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Cunning way to pay off your student loan?
zcaprd7
Posts: 1,079 Forumite
I have just found out that one can make extra payments to your student loan via credit card (including, handily AMEX).
If you get an AMEX via this link:
http://makeashorterlink.com/?Q16F527C8
you get 5% cashback on the first £1000 spent in the first month i.e. up to £50
The plan is to overpay you student loan by £1000 by using this card, get the £50 cash back, then move the £1000 around on 0% deals
This should be an easy amount to move around, the only caveat being the 2-3% minimum repayments needed to maintain a credit card balance - his could be avoided by using a MBNA 0% offer.
If you are thinking of paying off your student loan at all (either totally or in bits and pieces) one really should use a cash back card - the AMEX reverts to 1% after the first month.
If you get an AMEX via this link:
http://makeashorterlink.com/?Q16F527C8
you get 5% cashback on the first £1000 spent in the first month i.e. up to £50
The plan is to overpay you student loan by £1000 by using this card, get the £50 cash back, then move the £1000 around on 0% deals
This should be an easy amount to move around, the only caveat being the 2-3% minimum repayments needed to maintain a credit card balance - his could be avoided by using a MBNA 0% offer.
If you are thinking of paying off your student loan at all (either totally or in bits and pieces) one really should use a cash back card - the AMEX reverts to 1% after the first month.
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Comments
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Hi zcaprd7,
Great idea! I love cash back cards as I have made a bit of cash from them from using them for everyday living costs and paying back in full of course. My partner and I are always thinking of how we can make our cards work harder for us to get more cash back on them, you know like, car services food shopping etc. Never thought of using it for paying back extra on my student loan. Thanks so much for posting the above.
It's just a real shame that before even getting a mortgage we already kind of have one, in form of an eduation debt. If the government can afford to bail out the banks with our money, why does it not support the very people who pay their wages in taxes, just because we want to get an education??!!!!
Soz, I just had to rant!Thank you Martin and all at MSE :j0 -
Much better to not pay anything more back than you have to!0
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The Student Loans Company doesn't accept American Express cards.
The list of cards they do accept is here: http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,3866890&_dad=portal&_schema=PORTAL
Also, with any credit card payment there's a surcharge of around 1.5%0 -
This thread is from 2004 ... and spam!Gone ... or have I?0
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