How to Pay Off Your Student Loans Using a Credit Card and the Best Way to Go About It

Credit cards if misused can be scary, but they are also a great way to pay off your student loans, so learn how to pay off your student loans by using one!

Main image courtesy of NerdWallet. 

There are a lot of great uses that come from having a credit card. Credit cards are amazing when it comes to building credit for yourself, making a big purchase that you can pay off later, for emergencies, to use instead of a debit card when it comes to potentially being scammed, and for many other reasons. 

While credit cards are very convenient when it comes to seemingly having money right on the spot, it is also important to use them wisely. It can be very easy to go into credit card debt, but even harder to dig yourself out of it. 

Many people decide to use credit cards to pay off their student loans, but how exactly can you do it? We got you covered with some of the best and smartest ways to pay off those student loans using a credit card!

Why Should You Consider Paying Off Student Loans With a Credit Card?

Understand why this may be the best option for you and how to go about it!

Holding Credit Card
There are a lot of reasons why paying off your student loans with a credit card may help you the most! Image courtesy of Robb Report. 

Have you ever thought about getting a credit card? Credit cards are extremely useful when it comes to making big purchases and paying them off as well. No matter what it is you need to buy, credit cards can help you be able to afford what you need at any time. 

The most important thing about credit cards that you should know before using them is how important it is to pay them off on time. While lots of people would say that if you can pay your whole bill off, do that, but if not, pay at least the minimum payment. By paying off your whole bill, you won’t have to worry about interest building, which is always a nice perk.

When it comes to using credit cards to pay off your student loans, it is not possible to make student loan payments using a credit card. No matter what student loan provider or lender you have, it is pretty much prohibited to pay your student loans by using a credit card. 

You may need to use a third-party service, but that can be pricey and even cause you to pay more in interest over time, but there are ways that you can pay off your student loans with credit cards, and here’s how!

How to Use a Credit Card to Pay Off Your Student Loans

Here are the best ways to use your credit card to pay off your student debt easily!

Paying With Credit Card
Paying off your student loans can definitely be a hassle, but there are ways to do it with a credit card in order to pay off easier! Image courtesy of SoFi. 

Are you considering paying off your student loans with a credit card, but not really sure how to go about it to make sure that you’re doing it right? We understand that this can be a struggle and even intimidating, but we have you covered with some of the best ways. Listen up and check out how to make payments with your student loans using a credit card!

Use Cash Back Rewards to Put Towards Student Loans

While you can’t physically use a credit card to pay back your student loans since most student loan providers or lenders prohibit it, there are other ways to go around this and one of those ways is to get a credit card where you can get cash back rewards for spending money. With most credit cards offering up to 5% cash back on almost any purchase, this money can come in handy when paying off student loans.

You can use all of the cash back rewards that you receive and easily apply it to your student loans to help lower them while you’re in school. While this may not be what you really want to put that money to and you can easily use it on groceries, or other necessities, a little bit here and there to put towards your student loans goes a long way. 

Refinance Your Student Loans

Refinancing your student loans may be one of the best things that you can do. By refinancing your student loans, you can put all of your loans, both personal and federal, all on one loan with a lower interest payment, and even flexible time payments where you can expand your loan out longer with lower payments.

If you decide to refinance your student loans, you could potentially get a 0% APR credit card to transfer your student loan balance over to it to be able to pay it off. While it may not be recommended for everybody, you can actually pay off a huge chunk of your debt this way, but researching it is most important when deciding if this is right for you. 

It May Not Be the Smartest Idea

Paying off your student loans with a credit card could potentially cost you in the long run!

Paying off your student loans with a credit card may not actually be the best idea, and it’s important to know why! Image courtesy of Understood. 

While paying off your student loans with a credit card sounds like a good idea, in all reality, it may not be. There are many risks that you are taking when doing this, so it may not be for everybody.

Some ways that it could actually hurt you in the long run consists of:

  • Student loans may not be eligible with a credit card
  • Credit cards have higher interest rates (typically)
  • Balance transfer cards (mentioned above) have fees, limits, and even introductory windows
  • Credit score can drop
  • Lose any opportunity to negotiate with your student loan provider

There are many risks that come from paying off your student loans with a credit card, so it is always important to weigh out the pros and cons, and even talk to your student loan provider to get some extra information from them.

If you are looking to pay off your student loans with credit cards, it is essential to learn exactly how to do so. There are a few ways to go about it, so it is also important to consider what is right for you as well. If you’re looking into using a credit card to pay off your student loans, make sure to look into it first!

Sara Nuss
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