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BlueHusky
Posts: 193
Registered: ‎04-01-2012
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Credit Card to pay Student Loans? (Not what it looks like)

[ Edited ]

Hello everyone,

 

Before you start to judge - this is NOT what it looks like! I'm not trying to "pay off" my loans with credit cards and then pay the credit cards...paying debt with more debt is pointless. The issue is this:

 

My student loans will soon begin repayment, and I have to pay about $200 a month. Obviously, I plan to pay much more than this to get them paid off ASAP, and have budgeted about $2,000-$2,500 a month to put toward my loans. This is a huge chunk of money, and it seems rather pointless to just send in a check when I could do it through my credit cards and then pay in full each month when the statement closes, thus giving me points.

 

My question though is: will credit cards give points for loan payments? I've never heard of anyone paying a loan with a credit card, so it makes me think it's not a common practice, but it makes so much sense considering most people's monthly expenses include a substantial chunk toward auto loans, mortgages, student loans, etc. But even at 1 point per dollar that's at least 24,000 points a year, which would be nice.




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FrugalRican
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Re: Credit Card to pay Student Loans? (Not what it looks like)

If it's a card that has, for example: A 1% category for "anything else", then yes, this qualifies as "anything else".

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BlueHusky
Posts: 193
Registered: ‎04-01-2012
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Re: Credit Card to pay Student Loans? (Not what it looks like)


FrugalRican wrote:

If it's a card that has, for example: A 1% category for "anything else", then yes, this qualifies as "anything else".


Awsome. And most loan companies have no problem taking a credit card, yes?




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Dadaluma83
Posts: 364
Registered: ‎08-23-2011
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Re: Credit Card to pay Student Loans? (Not what it looks like)

I don't even think you can. My loans are through great lakes and I pay them online and the one and only option to pay is by bank account with your account and routing number.

FICO Scores: TU: 768 (Jan 2012), EQ: 755 (Jan 2012 Lender pull)
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Kr33ker
Posts: 143
Registered: ‎04-11-2012
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Re: Credit Card to pay Student Loans? (Not what it looks like)

I don't know who provides your student loans, but my provider Nelnet does not allow you to pay with credit cards unfortunately....

 

But yes if you can you will get points for it.

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FrugalRican
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Re: Credit Card to pay Student Loans? (Not what it looks like)

That's something you'd definitely have to ask the loan company in advance.

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drkaje
Posts: 3,492
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Re: Credit Card to pay Student Loans? (Not what it looks like)

Call the company and ask. Sallie Mae was more than willing to accept payment by credit card but charged $14.95 per payment, LOL!

 

You might save more calling the student loan company and seeing what discount they offer for automated payment from a checking account.


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Walt_K
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Re: Credit Card to pay Student Loans? (Not what it looks like)

You most likely will not be able to do it.  If you can do it, there are usually fees which negate the rewards. 


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FrugalRican
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Re: Credit Card to pay Student Loans? (Not what it looks like)


drkaje wrote:

Call the company and ask. Sallie Mae was more than willing to accept payment by credit card but charged $14.95 per payment, LOL!

 



OUCH.

Follow my financial journey: http://www.frugalrican.com


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webhopper
Posts: 7,230
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Re: Credit Card to pay Student Loans? (Not what it looks like)

I have Chase, which is serviced by ACS....   I can't use a CC, the only option I have is to use a bank account... I actually push payments through online bill pay from my bank.


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