Paying student loan on interest free credit card

Has anybody thought about the benefits of paying off your student loan with a credit card (either on 0% purchases or a reward card i.e. cash back then transferring to 0% balance transfer).

Could avoid the 1.5% interest and possibly make some cash back too?! With nearly 3 year interest free deals, might be worth it as long as you can pay it off during the period.

Just a thought. People will probably find loads of holes in the plan!

Comments

  • CLAPTON
    CLAPTON Posts: 41,865
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    do the SLC accept credit card payments and if so do they charge a fee?
  • SeduLOUs
    SeduLOUs Posts: 2,171 Forumite
    If you only owe a little bit and want rid then it might make some sense.

    One of the biggest risks is if you lose your job/income - you only pay student loan when you are earning, but you'll have to deal with the CC debt whether you have a job or not.

    The CC debt will also appear on your credit file, but that's not a major issue if you aren't planning on accessing other credit/loans for the duration of the repayment period and for a few months after.
  • ash82
    ash82 Posts: 13
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    good thinking Clapton, they charge 1.5%. It would have to be done via balance transfer to current account (by say MBNA) but then it would make more sense to keep the money in an interest paying account instead of paying off the loan
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