COVID-19 Crisis: CRED RentPay, Stash Services To Boost Finacial Confidence

Coronavirus has enveloped the world, bringing thriving economies to a standstill, making it difficult for many to manage their finances. In this scenario, CRED has updated its services with two new products CRED RentPay and CRED Stash to boost the financial confidence for creditworthy individuals.

How To Use CRED RentPay?

As the name suggests, the RentPay feature allows people to pay their monthly rents with their credit cards, directly from the CRED app. The benefit of the feature allows users to stock up their cash reserves and also enjoy the interest-free credit period. As with CRED, users can also earn rewards and even receive CRED coins once their credit card bill is cleared.

Members need to simply add the landlord's bank account or UPI details and instantly transfer the rent from their credit card, directly on the CRED app. Over time, CRED will enable members to set up auto-pay for timely payments. It should also be noted that CRED RentPay can be availed at a small transaction fee that will range from 1% to 1.5% depending on the member's credit card network.

What Is CRED Stash?

The second service launched by the payments app is the CRED Stash, which a flexible, low-interest and instant credit line. The pilot project has been rolled out in a collaboration with IDFC FIRST Bank, which is the first of its kind in India. CRED notes that the new service skips the tedious application and verification processes typically associated with loans and at an interest rate at one-third of typical credit card interest charges.

Credit can be drawn in three steps from the user's available limit and instantly receive the amount in their bank accounts. Users can also select their preferred duration to pay back, with no minimum tenure. The bank will charge interest only on the amount withdrawn, at a third of the interest rates charged on credit card usage, helping members stretch their stash during the pandemic.

Of course, this would depend on members' credit scores, credit card limits, and previous card repayment. Currently, CRED Stash is being rolled out to a limited group, with scope for further expansion and partnership with other banks.