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Paying off student loans with credit cards, overall credit utilization ratio
Wait, I know what you're thinking. Hear me out before saying this is a bad idea.

I have just over 10k left in student loans and I have the cash to pay it outright (woo!), however; rather than making the transfer from my checking straight to Uncle Sam why not use credit cards to get some airline miles / reward points out of it? I've never carried a balance and have very good credit overall, TU score hovers in the 780s. My lender accepts credit card payments so I'm all good there, my question pertains to credit utilization ratio.

The rewards card I could use has a limit of $6.3k, but my overall limit across all cards is significantly higher. Is my utilization rate calculated individually or across all cards? For example if I hypothetically put $4k from my loans on the card could I expect my score to drop based on a high utilization rate (63%) on that one card? Or would it not have a significant affect since my utilization rate across all cards would be much lower? The total of my credit limit across all cards is 50k. Again I plan to pay this off, right away.

I figure the best scenario would be to pay it off in chunks, even before the balance is reported to credit bureaus in a way where I wouldn't have high utilization rate on any card.

Has anyone else done this?

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