Benefits and drawbacks of utilizing a charge card to pay for student education loans
Before a decision is made by you, double-check the pros and cons. Robert Farrington, the creator of financial education website The College Investor, points away that there may be benefits to utilizing a charge card — however you need to be careful.
“Carefully review whether you are able to manage the payments and perhaps the advantages outweigh the costs, ” Farrington says. “In many cases, utilizing a charge card to pay for student education loans is probably not worth every penny. ”
- Earn much more benefits to make your instalments
- Get a 0% APR for those who have a credit card that is promotional
- Possibly pay your debt off faster if you’re able to make use of the 0% APR
- Don’t assume all lender takes charge card re re payments
- You may be charged fees that are steep making use of a charge card
- Charge card interest levels are often greater and may run you more in the event that you can’t spend from the stability before a 0% APR ends
- Lose federal student loan protections in some instances
- Interest you spend may no more be tax-deductible
