Can we not pay SL's with CC's?

[j_casteel]

I currently just have my student loans and some other bills going through my checking account, but I'm trying to switch as much of my monthly bills to my NFCU cashRewards card as I can. Using it for all my monthly bills would help me build my cash back super quick while PIF just the big single monthly payment to NFCU. I've gotten most everything switched over to be billed to my card, but my student loans have my checking account setup and when I try to add a different payment method they want a new routing/banking number, etc. 

If I could get everything setup to bill to that card, and use it basically as a debit card as well then that would be really helpful in staying organized and hopefully building a good relationship with them by charging thousands a month and PIF because I'll be treating most everything as if it were just coming out of my checking account with them. 

Thanks,

John

[sdoonan]

That would involve continual balance transfers. Unless you get lots of 0% offers/your student loan interest rates are obscenely high, it makes no financial sense to do so.

[Revelate]

I think that all depends who your loan is through as each lender is different is my understanding of it for this case.

Also in some cases (Sallie Mae) I think there is a fee.  Probably your best bet would be to call your lender of record and ask, but I think it does count potentially as a cash advance or balance transfer and so there are fees which may wipe it out.

[Rhaeny]

I too wanted to do that, maximize my rewards, and when I tried to add another payment option it only allows an ACH which really sucks.  (My loans I'm talking about are with the Dept of Ed. )

[j_casteel]

I would be doing it to maximize my rewards, and not trying to just transfer the debt. I would be PIF each month just as if I would be using my checking account/debit card. Some of mine are with Dept. of Ed, some are private, some are others. I think they all are just linked to my checking account currently and if I'm not able to do the change then I'll just update them to my new NFCU checking account instead. I just figured if I could then I would change them to my card since I have to change the payment method anyway. I'll call them and see if I am able to do so, and if its cash advances than it may not be too bad b/c there are fee's i don't think and the rate is the same as purchases on my card, but that wouldn't matter b/c I would be PIF anyway. I dunno....guess I'll just do some more research on it. 

thanks,

John

[sdoonan]

If it gets coded as a cash advance, I'd reconsider (no grace period for those).

[j_casteel]

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@sdoonan wrote:

If it gets coded as a cash advance, I'd reconsider (no grace period for those).

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NFCU has no fee's for balance transfers or cash advances (IIRC) the apr is the same as purchases as well. Everything would be paid immediately as well. Just trying to find ways to maximize my cashback rewards, etc. 

[bs6054]

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@j_casteel wrote:

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@sdoonan wrote:

If it gets coded as a cash advance, I'd reconsider (no grace period for those).

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NFCU has no fee's for balance transfers or cash advances (IIRC) the apr is the same as purchases as well. Everything would be paid immediately as well. Just trying to find ways to maximize my cashback rewards, etc. 

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Unless the card is unusual (which of course it may be), sdoonan is pointing out that usually cash advances have no grace period, so you pay interest from the day you take it until it is fully paid off (of course, if that is the next day, not too bad).  On some cards, it impacts everything, so all purchases have no grace period either if there is a cash advance.

Usually, if a loan company or a mortgage will take credit cards, they tack on a fee to recover the credit card fee.  With good enough reward cards, this is sometimes OK.

(e.g. there are some companies that let you pay your IRS taxes by credit card, and charge 1.89% or something for Visa/MC.  With a 2% Visa, you will be (very slightly) ahead).

You should check out chargesmart.com    They do allow payment of your student loans, mortgages etc by credit card, but their fees are too high in my case.

[j_casteel]

Thanks for the info...

I'll just check with my lenders and see if there are any fee's and go from there. Chances are ill just have to keep them setup through my bank account. Either way they're getting paid just would like to have as much go trough my card as possible.

Thanks again,

John

[chnceit]

Most lenders do not take credit cards to pay for loan repayment because they do not want to pay for credit card transaction fees.