Last Updated on December 6, 2020
Can student loans paid via credit card? The answer is yes, you can pay student loans with a credit card and also earn reward points or cash back by paying a student loan with a service called plastiq.
You can pay with your credit or debit card by using plastiq payment services for virtually any payments to the lenders/business. Student loans can also be paid using this service.
If you use your credit card rationally, you can earn a lot of reward points and can benefit from it. Just pay your monthly bills, taxes, or any payment with a credit card and get tons of reward points or cashback.
How Plastiq works?
It is a company that provides payment services by using debit and credit cards. You can pay for any type of service, loans, bills, rent, and many more.
See here what payments can be made via plastiq.
All you have to do is open a free plastiq account and input debit card or credit card details in the account. You can make payments to any merchant or bills whether they accept debit/credit cards as a payment method or not.
Plastiq uses debit/credit cards to process payments and transfer/pay in the method in which the recipient accept the payments, through via checks or bank account transfer. A fee of 2.85% is charged for such payment transactions.
It provides a platform for easy and fast money payments and the recipients did not necessary to have a plastiq account. For payments, via US debit cards a fee of 1% of the transaction is charged. Check here for fee details.
The payment delivery via plastic takes 2-8 business days according to the payment method selected by the payer. check here.
How to pay student loans with a credit card using plastiq
Let us understand the steps of setting a plastiq account and how you can use it to pay student loans fast.
Step 1) Fill in your email address to sign up for plastiq
To open a Plastic account, it asks for your email address to verify and authenticate. After confirming it will ask for you to fill in your personal details like name, password, phone number, etc., and also credit a sign-up bonus to your account. Put a referral code if you have any and create an account.
Step 2) Add a Credit Card
Now you have to add your credit/debit card details. It will ask for card holder name, card number and all necessary card information alongwith billing info.
Step 3) Add Recipient
The next step is to add a recipient. A dialog box will open which has a search option to whom you want to pay and it also asks for the country name. Fill in the details of the recipient and click continue. It will show a search result and if it matches the recipient you want to pay just select that result.
After that you have to select a method of payment i.e. ACH, Paper Check, wire transfer.
Step 4) Add Recipient Payment Address
Fill in the details of recipient to which payment is made. The details will be saved in the account.
Step 5) Fill the payment info.
After adding the recipient, click on start payment. Fill in how much money you want to send and then select the date of arrival. It will also ask for the payment is for one time only or you want to repeat the payment. You can pay extra money if you are in a rush to make payment quickly. Plastiq will let you know when your card will be charged and they will receive the payment.
Step 6) Fill in Details
After filling in the payment info, now you just need to fill in the account holder’s name (your name or on behalf of payment is made) account number which will be charged for the payment of the student loan. In the memo section, you can add a student loan and click Continue.
Step 7) Review all the payment info and submit the payment.
Review and confirm all the payment details i.e your payment amount, recipient name, and schedule. After confirming the details, Apply the sign-up bonus that you have received or just click on submit.
congrats! Your payment for the student loan is made using your credit card. To be on the safe side, always check the statement to confirm the payment.
Advantages of paying by using credit card through plastiq
You receive a sign-up bonus when you set up an account. Apart from this Plastiq also have a referral program, in this program, you will get can referral code. Whenever you refer plastiq to your friends, relatives, or any of your networks, you will get 1000 FFDs (fee-free dollars) and the person signing up will get 100 FFDs for making payments of $500. For more information click here.
You can also take advantage of various credit card sign-up bonuses which give you free reward points or cash back. You can also get tons of travel reward points and use them to travel the world.
He is graduate in M.B.A Finance, and owner of the financial blog “Saifwealth.com“. He started this blog to share his knowdelge in the field of finance and to help people understand and aware about the financial world.