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Should I Pay Off My Student Loans With A Credit Card

Apr 23, 2013


Being a student who wants to further their education can often times put you into a heap of debt.  This debt will come in the form of student loans.  The cost of schooling is increasing every year and depending on what type of career you are heading for it is possible for the student loan debt to reach as high as six figures before the student graduates.  There are many different ways that a student can pay their loans off once they have graduated and have a steady paying job.  One of these ways is to pay off the student loans with low interest credit cards.  The question that is always asked is should I do this and is it a good idea?  This article will help you to make the best-informed decision.

Paying With A Credit Card


Depending on the amount of your student debt it might not be possible to pay the student loans off with only one credit card.  If you are considering this as an option it will probably take more than one credit card to successfully complete this task.  Many people will have to obtain several cards before having enough credit to pay the full amount of their student loans.  Depending on how your credit cards work you may be able to obtain a cash advance to put towards your loans.  Many credit card companies will also send you convenience checks to be used for any purpose you wish.  These checks work just like other checks you may write.  They have the option of being used for whatever you want or need to. 

Interest Rates


If this is the method you are leaning towards to pay off your student loans it is important that you find the lowest possible interest rate available.  It will not save you any money if the interest rate on the credit card is higher than the interest rate that is already being assessed on your student loans.  It is easy to compare all interest rates by doing research on the Internet.

Other Options


There are other ways to pay off your student loan debt other than piling up debt on credit cards.  There are debt consolidation loans that are created for the purpose of paying off student loans.  This loan is an unsecured loan that may or may not come with a higher interest rate however you will only have one loan to make a payment on and one interest rate to be paid.  Unlike the student loans where you are paying more than one payment every month as well as extra interest. 

When considering options of how to pay off your student loans the option of credit cards may come to mind.  This is a decision that should be thought through very carefully.  There are many options available to you.  Credit cards do not have to be your last resort.  However if this is the way you decide to go be sure to do your homework and find the best interest rate available.


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