# Credit card rent payments can raise costs and hurt CIBIL scores 2026-08-15T05:55:47+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet Paying rent with a credit card may help manage cash flow or earn rewards, but it can add fees and increase borrowing costs. Processing charges may range from 1% to 3% of the rent, according to an AU Small Finance Bank blog post. On a Rs 20,000 rent payment, a 2% fee would add Rs 400 a month, or Rs 4,800 a year, before taxes. Carrying the balance beyond the due date can attract high interest, while paying only the minimum due leaves the rest accruing charges. Rent also uses available credit. A Rs 30,000 payment on a Rs 1 lakh limit means 30% utilisation before other spending. Banks generally advise keeping utilisation below 30%, as higher use can hurt the CIBIL score. ## Coverage - livemint.com Tags: AU Small Finance Bank, CIBIL, credit cards Canonical: https://indianopinion.org/credit-card-rent-payments-can-raise-costs-and-hurt-cibil-scores/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/credit-card-rent-payments-can-raise-costs-and-hurt-cibil-scores/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.