Cash Hash » Cash Hash » Cash Advance/ Cash Advances » Using 0% Credit Card + Air Miles to Pay off Student Loans?

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  #1 (permalink)
: We have the money to pay off our student loans (12k) and will be doing so in a lump sum. We also have credit cards with 0% (which really doesn't matter because we will pay it off right away) + air miles. Our loan company says we cannot pay using a credit or debit card, only with a bank account. A friend suggested asking our credit card company if we could get a check from them - is this possible, and would we be able to use it to pay for our loans? I understand the concept behind not accepting credit cards, but I'm checking to see if there is a way we won't miss out on air miles.
Great answers so far. I'm not sure what the transfer fee is, that would be another question. My husband's student loans we could use Western Union to pay it off and the fee would be $50, but I wasn't sure how much the credit card company would charge. Paying even a few hundred would be beneficial for the air miles, though, because we'd get $1,200 worth of air miles and we travel often. If we wouldn't be eligible for that though, there would be no point in doing it. Thanks for the advice!

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  #2 (permalink)
: the bank is telling you the truth,,, by law, you cannot pay off a loan with a credit card.
you cannot pay a loan with another loan (is what my credit union once told me),,, not sure why they called a credit card a loan but
write a check, and the loan company will refuse it (law).

and, writing a check,, isn't there a 3% fee of the full amount?
that wipes out any cash back or miles rewards,, ,poof.
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  #3 (permalink)
: Your credit card company is likely to treat this transaction as a balance transfer once they are that the check was made out to a lending institution and you wouldn't be eligible for miles. Miles are awarded for purchases, this isn't a purchase. Also, the loan company can legally refuse a credit card payment.
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  #4 (permalink)
: 0% rate usually last for certain time (6 months or 1 year), if can pay of the 0% loan before the offer time, then yes. You can, but if you couldn't pay the credit card loan before the end of offer time, then you will be in trouble and paying high rate (19.99%) than student loan. So, try may be 6K first and pay it off, then try another 6k later.
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  #5 (permalink)
: Just pay the loans from your bank account.

- Your credit card company will charge 4% for a cash advance (or a "check"). That's $480 right off the bat.
- Cash advances (and credit card "checks") are not eligible for "points".
- Your 12,000 points are not worth $1,200. They are worth $120 (or possibly $240 if you get "double points"). But this is a moot point because you don't get points for the cash advance.
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  #6 (permalink)
: Yes, it is possible to get a check from the credit card company, but it counts as a cash advance or balance transfer, which means:

1) You don't get any air miles (you only get air miles from purchases),
2) There are big fees (usually at least 3%, sometimes a lot more), and
3) Even if you pay it off right away, you still might have to pay interest
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