How to pay student loans with a credit card
Before you make a decision, double-check the pros and cons. Robert Farrington, the founder of financial education website The College Investor, points out that there can be advantages to using a credit card - but you have to be careful.
“Carefully review whether you can handle the payments and whether the benefits outweigh the costs,” Farrington says. “In many cases, using a credit card to pay student loans might not be worth it.”
- Earn more rewards for making your payments
- Get a 0% APR if you have a promotional credit card
- Potentially pay off your debt faster if you can take advantage of the 0% APR
- Not every lender accepts credit card payments
- You could be charged steep fees for using a credit card
- Credit card interest rates are usually much higher and could cost you more if you can't pay off the balance before a 0% APR ends
- Lose federal student loan protections in some cases
- Interest you pay may no longer be tax-deductible
How to pay student loans with a credit card
Before you make a decision, double-check the pros and cons. Robert Farrington, the founder of financial education website The College Investor, points out that there can be advantages to using a credit card - but you have to be careful.
“Carefully review whether you can handle the payments and whether the benefits outweigh the costs,” Farrington says. “In many cases, using a credit card to pay student loans might not be worth it.”
- Earn more rewards for making your payments
- Get a 0% APR if you have a promotional credit card
- Potentially pay off your debt faster if you can take advantage of the 0% APR
- Not every lender accepts credit card payments
- You could be charged steep fees for using a credit card
- Credit card interest rates are usually much higher and could cost you more if you can't pay off the balance before a 0% APR ends
- Lose federal student loan protections in some cases
- Interest you pay may no longer be tax-deductible
How to pay student loans with a credit card
Before you make a decision, double-check the pros and cons. Robert Farrington, the founder of financial education website The College Investor, points out that there can be advantages to using a credit card - but you have to be careful.
“Carefully review whether you can handle the payments and whether the benefits outweigh the costs,” Farrington says. “In many cases, using a credit card to pay student loans might not be worth it.”
- Earn more rewards for making your payments
- Get a 0% APR if you have a promotional credit card
- Potentially pay off your debt faster if you can take advantage of the 0% APR
- Not every lender accepts credit card payments
- You could be charged steep fees for using a credit card
- Credit card interest rates are usually much higher and could cost you more if you can't pay off the balance before a 0% APR ends
- Lose federal student loan protections in some cases
- Interest you pay may no longer be tax-deductible
