JamesKim
Senior Member
Cash: $ 46.35
Posts: 216
Joined: 26 Sep 2007
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Well I've had my credit card for awhile, and I'm doing quite well. I got my credit report and it's 680. Not bad, not excellent. I've been paying off my debt right after i get my statement. They give like 2 weeks to pay it off, I do it in a day. Also my expenses, I pay that off 1month in advance. Although I'm not rich, I am paying it off with no pressure. So everything is going swell. but i do have one question
When it's time for me to payback my student loans, should I do it by credit card? Like it's not much, I did mention in another thread, I have to pay like minimum 150ish per month. Just a thought, I think I might do that because by the time I graduate, I'll have money saved and it's not a HUGE burden.
Thanks
Regards,
J
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Tue Oct 14, 2008 12:34 am |
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JamesKim
Senior Member
Cash: $ 46.35
Posts: 216
Joined: 26 Sep 2007
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Well I want a better credit score, particularly in the mid 700's. When the time comes when I have to pay off my school debt, do I pay it off by using my credit card? by check or money order? I'll most likely live at home and save capital, so I won't have much expense to worry about. Just want to prepare my future in terms of what route to take, and how to improve in general. Any advice is appreciated.
Regards,
J
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Tue Oct 14, 2008 11:00 am |
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Avino
Preferred Member
Cash: $ 24.80
Posts: 117
Joined: 27 Mar 2006
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Just remember that student loan debt is deferred, credit card debt is not. And the credit cards can change the rate they charge you at pretty much anytime they feel like it. So if you pass your student loan debt to your credit cards you will be 1) paying higher interest rates, 2) have to start paying it back right away.
And the higher debt on your credit cards will decrease your credit score and in the short term make banks and credit cards not be willing to loan you money or give you credit since you already have a load of bad credit card debt.
I see no benefit in transferring your student loans to your credit cards, even if they deffer interest for a year, you will still have to start paying them back right away. Now if you pay off all your credit card debt in one year while you are not paying interest on it, OK then I can see where it may make sense.
~A.
Also blogging @ avinos2cents.blogspot.com
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Tue Oct 14, 2008 6:04 pm |
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JamesKim
Senior Member
Cash: $ 46.35
Posts: 216
Joined: 26 Sep 2007
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Well I have NO credit card debt. Just a few expenses here and there. The institution will give me a 6-9 months grace for me to find a job and start paying back the student loan. How is loan usually paid? by check? Lets say i get a balance statement saying i owe $150. What if I use my credit card, and pay it back immediately since I'll have the money in my checking account, or do I just right a check.
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Wed Oct 15, 2008 1:38 am |
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JamesKim
Senior Member
Cash: $ 46.35
Posts: 216
Joined: 26 Sep 2007
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thanks!
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Wed Oct 15, 2008 3:13 am |
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Avino
Preferred Member
Cash: $ 24.80
Posts: 117
Joined: 27 Mar 2006
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Also, student loans don't usually let you pay them with a credit card. It has to be a check or automatic withdrawal from a Bank account. I have my student loans with Sallie Mae, and after one year of on time payments they reduced my rate by .25% and then another .25% for signing up for automatic payments, and then another interest rate reduction for consilidating or something else that I did. All in all, since i've been paying back my loans, my interest rate reductions resulted in about $92 less dollars I had to pay back a month (money which now gets moved automatically to a brokerage account for investing from my checking account).
~A.
Also blogging @ avinos2cents.blogspot.com
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Wed Oct 15, 2008 6:10 pm |
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nkthen
Full Member
Cash: $ 9.90
Posts: 68
Joined: 16 Mar 2006
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Try not to use one credit to pay off another credit/loan. It's dangerous to play with fire (ie. Money).
The only time that you use one credit to pay off another credit is when you want to do debt consolidation.
Other than that, try to see if you can make money using other means to pay off the loan?
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Tue Dec 23, 2008 4:50 am |
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