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If you are focused on paying off your debt, use this student loan cashback card

Illustration of an article titled Use This Student Loan Cashback Card If You Are Focusing Laser On Debt Repayment

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I talked recently Credit card to help you pay your rentBut what about cards that help you pay your student loan?There is New card It does exactly that— —Offer 2% cash Return to the purchase applicable to the student loan servicer array. Let’s see if it’s a good card for you.

“Student loan cashback” can be a good option if you are focusing on laser on student debt

The· Laurel Road Student Loan Cash Back Card (It’s a bite) By allowing you to concentrate on repayment of student loans, you are different from other cashback cards and travel award cards.Not the first card to do it (Sallie Mae’s card line One case), But it is certainly the most flexible. Laurel Road claims to be able to repay 95% of student loan lenders (listed in the answer to one of their FAQs) Here). The main features and benefits of the card are:

  • 2% Student Loan Cashback with Qualified Servicer or 1% Cashback Statement Credit
  • After spending $ 5,000 within 90 days of opening a new card, $ 500 student loan cashback welcome bonus or $ 250 statement credit
  • Interest-free in the first year
  • Annual membership fee $ 0
  • 0% foreign transaction fee

Is a student loan cashback card worth it?

Okay. However, only if you plan to use this card to repay your student loan. The 2% repayment for student loans is a competitive rate, but the 1% cashback as a statement credit is not that great.And while the welcome bonus is pretty decent for a cashback card, the $ 5,000 spending target is relatively high. Compared to other cashback cards..

In addition, if you want to simplify your credit card habits and need a fresh start, a 12-month interest-free offer (if you want to transfer your balance from another card) is the best option. The variable APR then jumps from 13.99% to 22.99%, depending on creditworthiness.

Conclusion

There are better cashback cards out there, but if you’re committed to paying off your student loan as soon as possible, this card will work. An additional benefit is that you don’t inadvertently suffer from rewards that can lead to more spending. For example, dining, shopping, even if free hotels and flights are available from travel award cards Or activities during the holidays. On the other hand, this card is relatively simple and rewarding.— —But that’s the point. That means it’s simple.

If you are focused on paying off your debt, use this student loan cashback card

Source link If you are focused on paying off your debt, use this student loan cashback card

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