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Posted in Student Loans
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Question By
MHMabrito

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School loan on Credit card?
My Wife and I just got Chase's Freedom Card, so we have 31 months of no APR. We were thinking about what would happen if we put what's left of her school loan on the credit card?

We would get cash back points per 1%, and no APR.

The issue is we wouldn't be able to pay it all off right away, so we would be carrying a large balance over every month. Would carrying such a high balance over every month destroy our credit?

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You don't mention the amount, but if you can't pay the transferred balance before the end of the zero finance period then it probably isn't a good idea.  Your interest rate on the credit card is probably more than your current student loan interest.   

Top Contributor
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I also forgot to mention if you don't pay the transferred balance off within the zero transfer time, you'll be charged a $5 to 5% fee of the transferred amount.  Whichever is higher. There's a lot of fine print with transfers. Also, I don't believe you're going to earn 1% on that balance. That would be for new purchases only. Any new charges you make on the card will be charged at a different interest rate than the fee transferred, if all is not paid off at the end of the zero finance period. Are you sure it's a 31 month zero finance period? I've heard of 15, 18 and 22 month only.

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