- CRED launched two new products for its users – CRED
RentPayand CRED Stash, available to users who have a credit scoreof 750 and above.
- CRED RentPay allows users to pay their rent on credit.
- CRED Stash allows users to avail an instant line of credit up to ₹5 lakh.
In addition to allowing users to pay their rent, CRED is reportedly also working on allowing users to make payments such to landlords such as maintenance charges and security charges using their credit cards.
The first product, CRED RentPay allows users to free up cash by paying rent on credit. Users can pay their household rent using their credit cards from the CRED app.
By using this, users will be able to get an interest-free credit period on rent, earn reward points on their credit cards and earn CRED coins when they pay their credit card bill on the CRED app.
To use the new CRED RentPay feature, users will have to add their landlord’s bank account or UPI details into the app. This will allow users to directly transfer the rent from their credit card to the landlord’s account.
CRED will charge users a transaction fee of 1% – 1.5% depending on the user’s credit card network. This means that if you are using CRED RentPay to pay ₹20,000 rent, you will have to pay ₹200 – ₹300 to CRED.
CRED Stash has been launched as a pilot with IDFC FIRST Bank and the company has claimed that it is the only offering of its kind in India. The company has added that it will scale up with other bank partners on completion of the pilot.
CRED Stash is an online instant line of credit that will allow CRED users to quickly get credit without having to go through the application and verification process.
CRED users will get a pre-approved credit line of up to ₹5 lakh and users will be able to withdraw any amount within their pre-approved limit. Users will be able to select the tenure for the loan. CRED claimed that the interest charged is a third of the interest rates charged on credit cards. The pre-approved limit will depend on the user’s credit score and credit card limit.