This new credit card helps pay off student loans – is it worth it?

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Illustration for the article titled “This New Credit Card Helps Pay Student Loans.  Is it worth it?

Photo: Ivan Kruk (Shutterstock)

We recently talked about credit card with which you can pay rent, what about a card to help you pay off your student loan? there is new card it will do exactly thata 2% cashback offer on purchases that can be applied to a variety of student loan servicers. See if this card suits you.

This card is a good option if your focus is on student debt.

IN Laurel Road Student Loan Return Card (it’s mouthful) stands out from other cashback cards and travel rewards by helping you focus solely on paying off your student loan. This is not the first card to do this (Sally Mae’s card line one example), but it is by far the most flexible as Laurel Road claims you can repay loans for 95% of student loan lenders (a list can be found in the answer to one of their frequently asked questions. here). Here are the main features and benefits of the card:

  • 2% cashback on student loan with eligible service providers or 1% cashback on statement
  • US $ 500 student loan cashback welcome bonus or US $ 250 credit after spending US $ 5,000 within 90 days of opening a new card
  • No interest for the first year (if you transfer the balance from another card)
  • $ 0 annual fee
  • 0% commission for foreign transactions

Is a student loan cashback card worth it?

Yes, but only if you plan to use this card to pay off your student loan. The 2% payback against your student loan is a competitive rate, but 1% cashback as a statement loan isn’t all that good. And the welcome bonus for the cashback card is quite decent, although the spending target of $ 5,000 is relatively high. compared to other cashback cards

Plus, the 12 month zero interest offer (if you’re transferring your balance from another card) is ideal if you want to simplify your credit card habits and want to start over. After that, the variable annual interest rate jumps from 13.99% to 22.99%, depending on your creditworthiness.

Bottom line

There are better quality money back cards, but this card works well if you are aiming to pay off your student loan as quickly as possible. An added benefit is that you don’t get bogged down in rewards that could inadvertently lead to increased costs. For example, you might get a free hotel or flight with a bonus travel card, but you will likely end up spending more on food, shopping, or activities while on vacation. This card, on the other hand, is comparatively Spartan with its awards.but that’s the point, it should be simple.

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