For most people, rent is their biggest expense every month. Before Chexy, tenants had no choice on how they would pay rent—something that has now changed forever. Chexy offers tenants an opportunity to pay rent online, easily split with roommates, earn rewards, and build credit on rent. But should you be using your debit or credit card? In this blog, we will explore the pros and cons of paying rent using each method. 

Paying Rent With a Debit Card 

When you pay your rent with a debit card through Chexy, the payment is deducted directly from your chequing account. There are several advantages to using a debit card to pay your rent: 

• You will never have to worry about missing a payment as long as you have sufficient funds in your chequing account. 

• If you have roommates, Chexy makes paying rent incredibly easy. Once all roommates have signed up for Chexy, their share of the rent will automatically be taken, and we'll send one e-Transfer to your landlord on Rent Day. 

• You can build your credit with timely rent payments. Each month, Chexy sends your rent report to Equifax, one of Canada's largest credit bureaus. In just a few months, your credit score could greatly improve.

• You can earn rewards by paying rent with debit. Specifically, the Scotiabank Scene+ Visa Card earns you Scene+ points on every purchase. These points can be used for free food, groceries, entertainment purchases, and travel.

However, keep in mind that most other debit cards do not allow you to earn any points or rewards. This means you will miss out on many more potential rewards you could earn by using a credit card to pay your rent.

Paying Rent With a Credit Card

Paying rent with a credit card through Chexy can be an excellent way to earn rewards and points. Many credit cards offer rewards programs that allow you to earn points, cashback, or other rewards for every dollar you spend. This can be a great way to earn rewards for paying a significant expense like rent.

In addition to earning rewards on your card, paying with a credit card through Chexy allows you the same convenience you would otherwise enjoy with debit, including: 

• Automated payments 

• Easy Roommate Splitting

• Credit Building

However, it is essential to note that paying rent with a credit card can also have drawbacks. If you do not pay off your credit card balance in full each month, you will be charged interest on the balance. This can quickly add up and offset any rewards you earn from paying rent with a credit card. So, make sure you pay off your credit card in full or set up auto-pay, which you can learn how to do from our blog post on managing your credit card and increasing your credit score.

When it comes to paying rent, both debit and credit cards have their advantages. Paying rent with a debit card offers the convenience of never missing a payment, easy roommate splitting, and building credit. More importantly, it doesn’t cost much!

On the other hand, paying rent with a credit card offers the additional benefit of being able to earn much higher rewards that you can turn into free flights, vacation upgrades, and hundreds of dollars in cash back.

Ultimately, the right payment method will depend on your financial goals and priorities. If you prioritize earning rewards, paying rent with a credit card may be the better option. However, if you value convenience and never miss a payment, paying rent with a debit card may be the way to go.

Get started with Chexy today and start earning rewards on rent.

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