Paying off student loan with 0% interest credit card

dougieskins

Afternoon,

I have about £2300 left to pay of my student loan. I was just wondering whether it's better to pay it off with a 0% credit card (would cost ~£2340) and clear it before the 0% finishes or just carry on having it taken out of my wages?

I've got a good credit rating and no debt at the moment. I've got 2 credit cards already but I was thinking of sticking the student loan on an amex rewards credit card to collect the £100 voucher, transferring it over to a new 0% MBNA credit card and then pay it off before 39mths? Be good to have a little more control over how much I can pay off monthly, but would this damage my credit rating in any way?

[Deleted User]

It depends on how quickly you think it will be clear through your wages.

You'll probably need a money transfer option to the loan, so will have the fees, and won't gain any rewards through that route.

You also have the risk of not clearing it before the promo runs out and having it revert to a much higher rate.

You will also be stuck with the debt, whether you are working or not, unlike the student loan.

With regard to your credit rating, in what way do you mean?

Candyapple

Can you pay your student loan off with an Amex card? If not, I don't see how you can make use of the Amex gold offer.

What you would need is a money transfer card. However as zx has stated, there are some valid points to take into consideration before doing so.

Here is the eligibility calc:
https://creditcards.moneysavingexpert.com/?money-transfers

dougieskins

I'd always be able to pay at least the minimum each month to clear it before the promo runs out, regardless of if I'm working, and the idea would be to pay off more than the minimum each month if I can.

Couple of things with the credit rating, would taking out 2 additionally credit cards affect my rating? Also would transferring a student loan debt to a credit card affect it in anyway?

Car1980

Personally I’d rather keep the credit available for emergencies. Your car could massively fail its MOT next time for example.

Taking out one card shouldn’t be a detriment to your credit file, but the second card company might decline you if you apply soon after getting the first one.