Can I pay off a loan with a credit card?

Asked by: Mr. Greyson Boehm  |  Last update: December 2, 2025
Score: 4.8/5 (18 votes)

If you decide you want to pay off your personal loan using your card, there are a few different methods. One way is to transfer the loan balance to your card if it's allowed, but there's usually a fee of 3% to 5%. On a $5,000 balance, that could be up to $250 just in fees from your credit card issuer to make the move.

Can you use a credit card to pay a loan?

If your lender allows it and you are given enough of a credit limit, you may be able to pay a portion of your entire balance of your home, car or student loans with a credit card. Federal student loan issuers, however, are restricted by the Department of Treasury from accepting credit card payments.

Can I get a credit card to pay off a personal loan?

You can pay off a loan with a certain type of credit card, called a money transfer credit card. These enable you to transfer money from the card into your bank account, then pay the loan in part or in full.

Is it a good idea to pay off a loan with a credit card?

Nope. Most often, the interest rates of a credit card will be much higher that any interest you might owe on a loan.

Is it illegal to pay off a loan with a credit card?

At this time you can not pay off a loan with a credit card.

Take Out A Loan To Pay Off My Credit Cards?

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Can you use a credit card to pay off other debt?

A credit card balance transfer lets you move debt from one or more accounts to a different credit card. A balance transfer could help you pay off your debt faster by consolidating debt, getting a lower interest rate or both. Often, balance transfer cards come with an introductory low or 0% APR.

Can I pay my monthly car loan with a credit card?

Yes, you can use a credit card to pay for a new car, a used car, or your monthly payment on a new or used car. Why might you want to put a car on a credit card? For several reasons. Work it right, and a credit card could lower or even eliminate the interest on a car purchase.

Does it hurt your credit when you pay off a loan?

It's possible that you could see your credit scores drop after fulfilling your payment obligations on a loan or credit card debt. Paying off debt might lower your credit scores if removing the debt affects certain factors like your credit mix, the length of your credit history or your credit utilization ratio.

Can I pay rent with a credit card?

Landlords who do accept direct credit card payments have to pay merchant processing fees for the privilege, and it's common for them to pass those fees on to the renters on top of rent. The convenience fee for paying rent with a card typically ranges from 2.5% to 2.9%, which may sound small, but it adds up.

How to pay off debt quickly?

Paying off debt
  1. Figure out how much you owe. Write down how much you owe to each creditor. ...
  2. Focus on one debt at a time. Start with the credit cards or loans with the highest interest rate and make the minimum payments on your other cards. ...
  3. Put any extra money toward your debt. ...
  4. Embrace small savings.

Can I use a 0% card to pay off a loan?

There is a way to use a 0% interest credit card to pay off a personal loan. By taking out a money-transfer credit card with a good introductory offer, you can transfer money from the card to your bank account and then use these funds to pay off the loan debt.

What happens if you pay a loan off early?

However, some lenders may charge a prepayment penalty fee for paying the loan off early. The prepayment penalty might be calculated as a percentage of your loan balance, or as an amount that reflects how much the lender would lose in interest if you repay the balance before the end of the loan term.

Can I pay off a payday loan with a credit card?

While it's possible to use a credit card to pay off a payday loan, it's generally not advisable. Payday loans can come with high interest rates, and adding credit card interest can lead to significant debt.

Can credit cards be used for loans?

Loans on Credit Cards are pre-approved loans extended to you based on your Credit Card usage, repayment and history. Who can get a Loan on Credit Card? Since a Loan on Credit Card are pre-approved and extended without any documentation or collateral, a bank typically looks at your credit history and repayment record.

How to pay for a loan?

Here are four ways to help pay off loans faster:
  1. Make biweekly payments, rather than monthly. Making a smaller loan payment every two weeks is one of the best ways to pay off a loan faster. ...
  2. Make an extra payment toward your personal loan. ...
  3. Round up your loan payment. ...
  4. Look into refinancing your loan.

Can you pay off a line of credit with a credit card?

You can pay a line of credit with a credit card using a balance transfer, cash advance, mobile payment service or money order. It is not possible to directly charge a line of credit payment to a credit card, though, as issuers do not want you to consistently borrow to pay off borrowed money.

Can you pay car insurance with a credit card?

Yes, you can generally pay for your car insurance with a credit card. Doing so may lead to benefits like cash back or other credit card perks. Due to the prevalence of insurance apps and e-commerce, paying for insurance with a credit card is commonplace.

Can I withdraw cash from my credit card?

Yes, you can withdraw cash using a credit card, though it is expensive to do so. However, there may be situations where you're unable to withdraw cash from an ATM using your credit card because you've reached the credit limit for a cash advance on your card.

What is credit card churning?

Credit card churning happens when a person applies for lots of credit cards to collect big sign-up and welcome bonuses (often in the form of cash back or miles). Once they get the sign-up rewards and bonuses, a credit card churner will usually stop using the cards or cancel them, only to repeat the process again.

How to get 800 credit score?

Making on-time payments to creditors, keeping your credit utilization low, having a long credit history, maintaining a good mix of credit types, and occasionally applying for new credit lines are the factors that can get you into the 800 credit score club.

How to clear a personal loan faster?

How to Pay Off Your Personal Loan Quickly?
  1. Tips for paying off personal loan early.
  2. Review the debt you owe.
  3. Understand your repayment capability.
  4. Try to make an extra payment.
  5. Round up the EMI amount.
  6. Use a bonus to make a larger payment.
  7. Consider doing a loan balance transfer.

Is 650 a good credit score?

A FICO® Score of 650 places you within a population of consumers whose credit may be seen as Fair. Your 650 FICO® Score is lower than the average U.S. credit score. Statistically speaking, 28% of consumers with credit scores in the Fair range are likely to become seriously delinquent in the future.

Why can't I pay a loan with a credit card?

Unfortunately, most loan types prohibit you from making a payment directly with a credit card. Yes, there are some workarounds, but higher interest rates, processing fees and potential risk factors generally make those methods inadvisable. Here are some potential ways to pay a loan with a credit card.

What bills can I not pay with a credit card?

Depending on the type of bill and the merchant, you may be able to use a credit card to pay bills. Mortgages, rent and car loans typically can't be paid with a credit card. If you pay some bills, like utility bills, with a credit card, you may need to pay a convenience fee.

Can you pay off a personal loan with a credit card?

If you decide you want to pay off your personal loan using your card, there are a few different methods. One way is to transfer the loan balance to your card if it's allowed, but there's usually a fee of 3% to 5%. On a $5,000 balance, that could be up to $250 just in fees from your credit card issuer to make the move.