Laurel Road, a digital lending platform and subsidiary of KeyBank, announced a new credit card on June 22nd. Laurel Road Student Loan Cash Back Card offers a 2% cashback if you use your rewards to pay off student loans with most lenders. The no-annual card also comes with some impressive benefits and a solid welcome bonus, which puts it on par with some of the best refund credit cards on the market.
- Laurel Road’s new student loan cashback card offers 1% cashback on all your purchases, but doubles that amount if you use rewards to pay off student loans.
- You can pay off student loans at most federal and private student loan organizations.
- The card also comes with an impressive welcome bonus and an introductory balance transfer promotion of 0% per annum with no annual fee.
- The card is worth considering for any student loan borrower looking for debt relief.
How Laurel Road Student Loan Return Card Works
Laurel Road Student Loan Cash Back Card is not the first credit card to offer the best repayment rate if you use your cash back to pay off your student loan. All three credit cards issued by Sally Mae give you 25% more value if you use your rewards to pay off your student loan debt.
However, even with this bonus, the greatest benefit you will get with Sallie Mae cards is roughly 1.56% when using rewards to pay off student loans.
In contrast, the new card from Laurel Road doubles the value of your remuneration to 2% if you use your money back to pay off student loans. Moreover, 95% of federal and private service loans are involved, so most student loan borrowers can take advantage of this impressive advantage. (You can check the fine print on the card website to make sure your lender or service provider is listed.)
The card also offers impressive incentives for new cardholders. First, you will earn $ 500 against any eligible student loan after you spend $ 5,000 within the first 90 days of opening an account. You will be hard pressed to find the best welcome offer on another credit card without an annual fee if you can afford to spend $ 5,000 in three months.
You will also receive a starting rate of 0% per annum for 12 months on balance transfers made within the first 60 days of account opening. After that, the variable annual interest rate jumps from 13.99% to 22.99%, depending on your creditworthiness.
Should you apply for this card?
Laurel Road Student Loan Cashback Card is far from the only credit card available with a 2% return, and you can use the cashback earned from any credit card to pay off your student loan debt.
But a 2% reward, combined with a $ 500 welcome bonus, might be enough to get this card if you have a large student loan debt.
However, if you do not have student loans or have very few balances on your balance sheet, this may not be as attractive because once you pay off your student debt, you only get 1% back. everything.