I am fortunate enough to have about $30K to pay off my student loan balances. I would like to make some $$ or points from that. My student loan servicer does not accept credit card payments.
I have enough of a limit on my Discover Card and Capital One card to transfer the balances from the student loan accounts and then pay off the CC in full. This will allow me to earn 1% (Discover) and 1.5% (Capital One) cash back respecctively.
Has anybody done this or have any thoughts to share? Seems like it should be pretty straightforward but wanted to make sure. Both Discover and Capital One confirms that there would not be a balance transfer fee!
Cash back cards do not pay points nor cash back on balance transfers. It's only charges.
I know. And with most cards, there is a fee to do a balance transfer that would outweight any cashback being offered. Most start at a minimum of 3%.
Now, there are some credit unions that offer promotions for doing a balance transfer, and many credit unions do not charge a balance transfer fee. For example, Chartway Federal Credit Union has a VISA card where they are offering a 3% credit on a balance transfer up to $300. And they do not charge a balance transfer fee. Only thing with this, is that you would have to be a member with a credit card with them with a high ennough limit.
So, you may want to check some credit unions in your area, but be very careful with this because with balance transfers and cash advances the interest starts to accrue immediately. There is no grace period like with charges.