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justGradded

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Is paying off student loans by opening a credit card a good way to build credit?

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Top Contributor
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Thats a loaded question

I presume you mean pay off your student loans by paying them off on a credit card.  You would be transfering the debt from one account to another.  This could work if your loans are small enough to pay off with a credit card and the interest rate on the card is lower than the Student loans are.  Its tricky, but it could be done.

Will it raise your score.  Thats hard to say, since you would be transfering debt and closing the loans your debt ratio wouldn't change.

Good Luck

Top Contributor
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You'll likely end up paying higher interest on the credit card than on the regular payments to the student loan servicer. Check it out before proceeding.

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