By ARYEMAN RAJ
What if I told you that your credit card could become a money-making tool without you even swiping it yourself?
Imagine this – a friend comes to you saying he’s spotted a huge discount on a
laptop using an SBI credit card. Or maybe another friend needs to order
electronics on Flipkart because Axis Flipkart cards offer the best cashback. He
doesn’t have the card, but you do. He pays you in cash, you swipe your card, he
gets his discount, and you pocket a neat commission. Sounds too good to be
true? Not really.
This is the rising trend of “renting your credit card.” It’s an under-the-radar
way many people are making extra income, but it comes with its own risks.
How the Scenario Plays Out
Let’s say you have both an SBI credit card and an Axis Flipkart credit card.
Two friends reach out to you:
- Friend
A wants to buy a high-end smartphone worth ₹40,000 on Flipkart because the
Axis Flipkart card is giving 10% instant discount.
- Friend
B wants to buy a laptop worth ₹60,000 using your SBI card because of a
festival deal.
Both transfer the full cash amount to you, you make the purchases, and in return, you charge them a small “convenience fee.” On these two big purchases, you walk away with a minimum of ₹1,500 pure profit.
Now imagine this happening every month. Even if you only manage two transactions like this, you’re looking at ₹18,000 a year—without lifting more than a finger.
There are genuine reasons why friends or acquaintances may approach you:
- They
don’t own a premium card but want the festival discounts.
- They
maxed out their own card and need an urgent purchase.
- They
trust you more than waiting for a new card approval.
For them, it’s about saving money. For you, it’s about making money.
The Pros of Renting Your Credit Card
- Easy
Side Income:
Quick cash inflow with little effort.
- Festival
Season Goldmine:
Discounts are high, demand for such arrangements peaks.
- Networking
Advantage:
Builds goodwill with friends and family while you earn.
The Risks You Cannot Ignore
Before you get too excited, know this—renting your credit card is not without
dangers.
- Default
Risk: If your
friend doesn’t pay you back in time, the liability sits with you.
- Trust
Factor: Misuse
of your card details could land you in debt.
- Legal
Gray Area:
While not outright illegal, credit card issuers discourage this practice.
- Only
help close friends or trusted relatives.
- Never
share card details or OTPs, always do the transaction yourself.
- Limit
it to big-ticket purchases only, not small day-to-day spends.
- Set
clear terms—cash must be handed before the purchase.
Bonus Tip: Use It to Maximize Your Rewards
If you’re already going ahead, ensure you’re also earning reward points,
cashback, or vouchers on top of your commission. That way, your profit
doubles without your friends losing anything.
Final Word – Don’t Overdo It
Renting your credit card can be a clever hack to generate a side income,
especially during the shopping season. But remember, it’s not a full-time
business model. Overuse can attract scrutiny from banks and create financial
risks you may regret later. Done wisely and occasionally, it can easily bring
in ₹15,000–₹20,000 a year.
So the next time someone asks, think twice—but if the deal is right, your
credit card might just be your secret income weapon.
ABOUT THE WRITER
ARYEMAN RAJ, Editor, brings 25+ years of Indian and international banking expertise. His tried-and-tested financial hacks help readers save money, make money, and build wealth. As a consultant, he has guided many start-ups in creating strong USPs and achieving sustainable success.
