Daijiworld Media Network – New Delhi
New Delhi, Jul 31: As digital payments become increasingly common in India, financial experts have advised consumers to use online rent payment options responsibly, warning that while digital rent payments do not directly impact credit scores, repayment behaviour can significantly influence an individual's credit profile.
According to the Reserve Bank of India (RBI), the Unified Payments Interface (UPI) processed over 18 billion transactions in June 2026, underscoring the country's rapid adoption of digital payment systems.
Sarika Shetty, Co-founder and CEO of RentenPe, said rent is one of the largest recurring monthly expenses for urban households, often accounting for 25-30 per cent of income in metropolitan cities, making timely payments an important aspect of financial planning.
"Online rent payments are about much more than convenience. While simply paying rent digitally doesn't directly impact your credit score, the financial behaviour associated with those payments certainly can. If rent is paid using a credit card or any credit-backed facility, your repayment discipline becomes the determining factor in whether it strengthens or weakens your credit profile," she said.
Shetty cautioned against relying on credit cards or other borrowed funds to pay rent without a clear repayment plan. Delayed credit card payments, carrying forward outstanding balances or paying only the minimum amount due can increase credit utilisation, an important factor considered by credit bureaus while evaluating creditworthiness.
India's credit card user base has crossed 110 million, reflecting the growing use of credit for routine expenses. However, Shetty stressed that recurring payments such as rent should not lead to revolving debt.
"Many people believe completing the rent transaction is the final step. In reality, responsible repayment is equally important. Missing repayment deadlines or consistently carrying credit card balances can gradually affect your financial profile and make future borrowing more expensive," she added.
The expert also advised consumers to treat rent as they would an Equated Monthly Instalment (EMI), planning for the expense in advance instead of depending on short-term credit.
She noted that making rent payments consistently not only reflects financial discipline but also helps individuals manage cash flow more effectively and avoid unnecessary borrowing.
Shetty further recommended using trusted digital payment platforms that provide verified transaction records and payment receipts, creating a transparent financial trail that can be useful while applying for loans, signing rental agreements, claiming reimbursements or resolving payment disputes.
"Digital payment platforms should enable financial discipline, not encourage overspending. Convenience should never replace responsible financial behaviour. Whether you're using a bank account, UPI or a credit card, understanding your repayment capacity and managing recurring expenses responsibly is what ultimately protects your financial health," she said.