Pay Rent With Credit Card in Singapore: Is the Processing Fee Worth the Rewards?
Paying rent is one of the largest monthly expenses for tenants in Singapore, so it’s no surprise many renters look for ways to pay rent with a credit card to earn miles, cashback, or other rewards.
While it is possible to pay rent via credit card, these payments usually come with processing fees that can quietly add up to hundreds of dollars a year. Whether those fees are worth paying depends less on headline earn rates and more on a few practical factors your credit card’s earning power, how you use rewards, and how disciplined your repayments are.
What many tenants don’t realise is that credit cards aren’t the only way to earn rewards on rent. Today, eGIRO-based options allow tenants to earn miles on rent with significantly lower fees and no interest risk.
This guide breaks down:
When paying rent with a credit card does make sense
When the fees typically outweigh the rewards
Why earning miles via eGIRO is often the better default for most tenants
Understanding the Cost of Paying Rent With a Credit Card
Standard Fee Structure in Singapore
Most platforms that allow tenants to pay rent with a credit card act as intermediaries. They charge your credit card, then transfer the funds to your landlord’s bank account.
In practice, this means:
Fees are usually percentage-based per transaction
Fees are non-refundable, regardless of rewards earned
Annual costs can be substantial on high rent amounts
Different platforms apply different fee structures
Because rent is a recurring expense, even a modest fee can compound into a meaningful long-term cost.
What You’re Actually Paying For
When you pay your rent with a credit card, the fee generally covers:
Conversion from credit card payment to bank transfer
Automated, recurring payment convenience
Access to credit card reward earning
Some flexibility in payment timing or cash flow
The key question isn’t whether rewards exist, it’s whether the value of rewards consistently exceeds the fees paid.
When Paying Rent With a Credit Card Makes Sense (And When It Doesn’t)
High-Earning Credit Cards
Paying rent via credit card can make sense if you hold a card with strong earn rates on general spending.
This typically applies when:
Your card earns premium miles or cashback on non-retail spend
Rewards are not capped or excluded for rent payments
The value of rewards clearly exceeds the processing fee
These scenarios are most common with top-tier miles cards, but they apply to a relatively small group of tenants.
Meeting Credit Card Sign-Up Bonus Requirements
One of the strongest use cases for credit card rent payments is meeting welcome bonus minimum spend requirements.
Why this works:
Sign-up bonuses often require large spend within a short timeframe
One or two rent payments can meet the entire requirement
Bonus value typically far exceeds the one-time processing fee
Even tenants with average cards may find this worthwhile, as welcome bonuses are usually the most generous rewards banks offer.
Large Monthly Rent Amounts
Higher rent naturally means more rewards earned.
This works because:
Rewards scale with transaction size
Percentage-based fees remain constant
Larger payments are more likely to exceed break-even points
That said, this only holds if rewards are credited fully and reliably.
When Paying Rent With a Credit Card Is Not Worth It
Low Credit Card Earn Rates
Basic credit cards with minimal rewards rarely justify processing fees.
In these cases:
Rewards earned don’t cover the cost of fees
Fees effectively erase any benefit
Free payment methods are usually better
If your card earns poorly on general spending, paying fees offers little upside.
Inability to Pay the Balance in Full
This is the biggest red flag.
Credit card interest rates are extremely high, and:
One month of interest can wipe out months of rewards
Carrying a balance negates any benefit instantly
It creates a debt cycle that outweighs rewards
Paying rent with a credit card is only viable if you pay the full balance every month.
Cards That Exclude Rent Payments
Not all credit cards reward rent payments.
Before committing to fees, check:
Whether your card excludes bill payment categories
If transactions fall under MCC 7399 (business services)
Recent bank policy changes affecting rent rewards
Some major banks have stopped awarding rewards on rent entirely, making fees pointless in these cases.
Very Low Monthly Rent
For tenants with lower rent amounts:
Rewards earned are minimal
Fees represent a disproportionate cost
Achieving positive returns is harder
In these situations, lower-cost alternatives tend to work better.
Earn Miles on Rent Without Using a Credit Card
Many tenants assume credit cards are the only way to earn rewards on rent. In reality, eGIRO-based solutions now allow tenants to earn miles directly from rent payments without paying high credit card processing fees or risking interest charges.
This is where Rently stands out.
Rently’s eGIRO Advantage: Same Goal, Fewer Trade-Offs
How Rently’s eGIRO Works
With Rently’s eGIRO plans, tenants can:
Pay rent via automated bank deductions
Earn Max Miles on rent payments
Transfer those miles to major airline programs
Avoid credit card processing fees and interest risk
Unlike traditional eGIRO payments, which offer no rewards, Rently bridges the gap between cost efficiency and earning potential.
Why eGIRO Is Often the Better Default
Compared to paying rent with a credit card, eGIRO:
Has a significantly lower cost structure
Still offers automated, hands-off payments
Earns transferable miles
Doesn’t impact credit utilisation
Makes positive returns easier to achieve
For tenants whose primary goal is to earn miles, not to chase credit card hacks, eGIRO delivers the same outcome with fewer compromises.
Key Factors to Consider Before Choosing Your Rent Payment Method
Your Credit Card’s Earning Power
Ask yourself:
What is my actual earn rate on rent-related transactions?
Are rewards capped or excluded?
How do I personally value miles or cashback?
Headline earn rates don’t always translate into real value.
Your Payment Discipline
Be realistic about:
Your ability to pay balances in full every month
Income stability
Any risk of carrying a balance
Interest charges instantly destroy reward value.
Your Travel and Reward Goals
Consider:
Do you actively redeem airline miles?
Are you planning specific redemptions?
Do you prefer cashback over travel rewards?
Unused miles have no value.
Total Cost Perspective
Look beyond monthly fees:
Compare annual fees paid versus annual rewards earned
Factor in effort and complexity
Evaluate against free or lower-cost alternatives
The best strategy is the one you can sustain comfortably.
Choose the Right Rent Payment Strategy
Paying rent with a credit card can be worth it but only in specific situations such as meeting sign-up bonus requirements, using high-earning cards, or paying very large rent amounts.
For most tenants, however, earning miles on rent via eGIRO offers better value. Lower fees, no interest risk, and transferable rewards make it a more practical long-term solution.
If your goal is to earn miles without overpaying in processing fees, skipping credit cards and choosing eGIRO is often the smarter choice. You can explore Rently’s eGIRO plans here.
👉 https://www.rently.sg/rentlypay/egiro#pricing
Frequently Asked Questions
Q1: How do I know if my credit card’s rewards will exceed the processing fee?
Check your card’s earn rate on rent transactions, whether rewards are capped or excluded, and how you value the rewards. If rewards clearly exceed fees and you pay balances in full, it may be worthwhile.
Q2: Why is eGIRO cheaper than credit card rent platforms?
Credit card platforms incur interchange and processing costs from banks. eGIRO avoids these, allowing lower fees while still rewarding tenants with miles.
Q3: Should I use rent payments to meet credit card sign-up bonuses?
Yes. This is one of the strongest use cases, as welcome bonuses often far exceed one-time processing fees.
Q4: What happens if I can’t pay my credit card balance one month?
Interest charges will likely exceed the value of all rewards earned. If there’s any risk of carrying a balance, credit card rent payments are not recommended.
