Providing you with links and helpful information on unsecured credit cards for bad credit.
Can I Pay Student Loans with a Credit Card?
Would you rather owe money to your student loans or to a credit card company? It seems like the answer would be obvious. Student loans are supposed to offer lower interest rates and be a safer type of loan to debtors. If you start to go into default or if your student loan gets sold off to another company you may be better off moving the debt to a low interest, or no interest credit card. But is this even a possibility?
The short answer is yes, but it is important to understand the benefits of moving your student loan debt to credit cards as well as the risks involved.
Consider the Interest Rates & the Terms
Many students get caught up in the extra income they can get form their student loans and often take more than they really need. Unfortunately, many of the private lenders have interest rates as high as some credit cards. Another thing to consider is the fact that student loans are considered to be federal loans and are subject to much harsher treatment if you ever need to file for bankruptcy.
Currently, the interest rates for student loans can be as high as 7.14%. If you have good credit, your credit card interest rates can be much lower than that.
Don't Transfer Student Loans with Bad Intent
Before paying off your student loans with credit cards it is important to think about your intent. If you plan on transferring the loans and makes their payments on time could really benefit and save thousands of dollars in the process. If you are intending to transfer your student loans and then file bankruptcy, however, there is a good chance you will be stuck with the debt again anyway. Bankruptcy judges are very aware of this strategy and will consider the intent of the credit card payoff during your bankruptcy hearing.
If you are looking to pay off your student loans and lower the interest rates - or even get away from going into default - using a credit card could be the right choice. Before doing so you need to look at the benefits from the payoff. Will paying off your student loans with a credit card lower your interest rates and payments? If the answer is yes, then it may be the right choice for you. Just make sure that you will be able to make your monthly credit card payments or you could end up with the student loan debt right where it started.
*Information in these articles is brought to you by www.Unsecuredbadcreditcreditcards.com. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.
Have bad credit? Want to apply for an unsecured credit card for bad credit?
Security Notice: All Applications utilize Secure SSL Technology for secure transmissions.
*See the online credit card applications for details about terms and conditions of credit card offers. Reasonable efforts are made to maintain accurate information. However all credit card information is presented without warranty. When you click on the " Apply Now " button you can review the credit card terms and conditions on the credit card issuer's web site.
Information in these articles is brought to you by www.Unsecuredbadcreditcreditcards.com. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.
Advertising Disclosure: www.Unsecuredbadcreditcreditcards.com is an independent, advertising-supported comparison service. The owner of this website may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.
For more information about our site please visit: Terms Of Use
To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard.
To get a free copy of your credit report from the three major credit bureaus, go to www.annualcreditreport.com
Can I Pay Student Loans with a Credit Card?
Security Notice: All Applications utilize Secure SSL Technology for secure transmissions.