how can i use my credit card to pay off student loans?

Question

i have good credit and no balance. i would just like to get more miles on my mileage credit card through more purchases.

i always make credit card payments in full. i can write a check to my education loaner but why do that when i can use my credit card, earn some miles, then pay off my credit card. at least i can get something out of it.

Answer 1

1. First it would depend on whether or not the lender accepts c/c payments (which most do so that shouldn't be a problem)

2. Be aware of the difference in interest rates. Student loans usually carry fairly low interest rates, where credit cards are normally much higher. Is it worth all that interest for the miles?

Answer 2

And then pay off your student loans at a much higher interest rate? You're better off consolidating the student loans (~6% interest) and buying yourself an airplane ticket with the money you save by not putting it on a credit card (up to 20 something % interest). $10,000 in student loans looks a lot better then $10,000 in credit card debt. If you have a credit card with 0% interest for so many months and will be able to pay off the balance before that period is over, then contact the banks who gave to loans and ask them how to do it.

Answer 3

It would be better for you to just keep the current loan balance, and forget about the miles. Credit card interest is far more expensive than a student loan. and besides that, you would need mucho miles to make it worth the switch