When Should You Consider Paying Your Student Loan Debt With a Credit Card
Improving your financial situation means thinking about the long-term consequences. For example, credit card debt carries a much higher interest rate than student loan debt. Paying off your loan with a credit card, however, can potentially earn you rewards in order to reduce your losses.
As the personal finance blog Money Ning points out, conventional wisdom suggests that paying off low-interest loans with high-interest credit cards is a bad idea. This is true if you don’t pay right away. However, if you pay off your student loan on a monthly basis with a credit card (provided they accept it) with the amount you intended to pay, you can improve your credit score and receive rewards:
If you meet these criteria, be sure to look for the best rewards and login bonus options. Again, this is not a good idea if you cannot pay by credit card every month. You still need to have cash to pay the credit card company every time you make a student loan payment. Otherwise, you simply increase your credit card balance and pay a higher interest rate compared to the lender. On the other hand, a good credit rating and good financial habits can allow you to get money to pay off your student loans. This definitely needs to be considered.
We already know that making regular payments on your credit cards is a good way to improve your credit score . Paying off one debt to another is usually considered a bad move, but it can actually be very beneficial if you are disciplined enough to only use your credit card for the payments you were about to make and pay them back immediately .
Should I Pay Student Loans By Credit Card? | Ning’s money