Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Student Loans
Profile Image

Question By
wolfpack15

0 Contributions
0 People Helped
Is it advisable to use a 0% CC to pay off 5500 student loan (currently @ 6.8%)?
One of my student loans is currently sitting at 5500 principal balance with 6.8% interest. Is it advisable to use a credit card that has a 12+ month intro interest rate of 0% to pay off this loan and then pay off the credit card with the normal monthly payments?

I didn't know if the interest savings would be worth using the credit card to pay off the full amount.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-3 of 3Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
97 Contributions
131 People Helped
Most Helpful Response

No

Helpful to 1 out of 1 people

It is NOT advisable unless you can and will pay off the student loans within the 12 month period with zero interest. Otherwise, you will end up accruing interest at a much higher rate than 6.8% once your 12 months are up.

Top Contributor
7344 Contributions
3805 People Helped

IF, and only IF you can pay that $5500 off within the 12 month period, I'd go for it.  But, considering that the interest rate on the majority of credit cards is about 9% or higher (and usually higher) the remainder of the loan that would fall under that higher rate could end up costing you more than if you let things go at their current rate.  Only you know your income and personal expenses, and can "crunch" the numbers to see what may work for you.

Top Contributor
5038 Contributions
1131 People Helped

As jwsister already said I would only consider this if you are absolutely sure that you can pay it off in the zero percent time frame. Also be aware that it depends on the limit of the credit card, but you may end up having to max the credit card or utilize a high percentage to do this and that in turn will cause damage to your credit scores. You are dinged much more for revolving debt than installment debt.

Results 1-3 of 3Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.