College Loans pay with credit card

llahhall · #1 (**permalink**) 09-25-2008, 12:28 AM

Currently, I have about 50k worth of college debt. I'm paying about $660 a month on my loans.

I just got a credit card, it receives cash back ect., what would happen if I used my credit card to pay my monthly payments. Would it have an negative effect on my credit score? I would pay off the balance of my credit card prior to anything being due. If I do this, I would earn 2%-6% cash back on my account.

Thats 1k to 3k in savings.

Thanks

User Name · #2 (**permalink**) 09-30-2008, 04:51 AM

Using a good cash back credit card for daily expenses is one thing I practice. I do not carry any bank debt/ATM cards. I carry one credit card to ay for everything. Key here is to pay in full every month to avoid interest. If your not paying it off every month, your living above your means and are costing yourself more money. This is one thing that can really help your credit and make some money if used properly or destroy yourself if you abuse it.

Natemcdo · #3 (**permalink**) 10-06-2008, 02:03 AM

Thats not a bad idea, but you have to remain disciplined and not slip up, if you happen to start missing those payments your going to be in for a world of hurt, I use my credit card for everything as well in this manner, and recommend it to all, as long as they can make the payments and remain disciplined.

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