How to Pay Aidvantage With A Credit Card

Paying your Aidvantage student loans with a credit card can be a strategic move for earning rewards. Here’s a general guide to navigating the process and making it work for you.

1. Confirm Payment Options: First, verify if Aidvantage accepts direct credit card payments. Most federal loan servicers require using a third-party payment service, which typically charges a convenience fee for the transaction.
2. Select the Right Card: Choose a credit card that offers rewards that outweigh any fees. If you need help finding the best fit, the Kudo's explore cards tool can help you compare thousands of options.
3. Evaluate the Costs: Carefully calculate whether the rewards earned from your credit card will exceed the processing fee charged by the payment platform. If the fee is higher, this method may not be cost-effective.
4. Make the Payment: Use the chosen payment service to process your transaction. Double-check that you have entered all your Aidvantage loan account and credit card information correctly before submitting.
5. Pay Off Your Card Balance: To avoid negating your rewards with high-interest debt, pay off the credit card balance in full and on time. This final step is crucial for the strategy to be successful.

Impact On Your Credit Score

While you can't pay Aidvantage directly with a credit card, using a third-party service to do so can affect your credit score in several ways. Here are a few key factors to consider before making a payment.

• Credit Utilization Ratio. Charging a large student loan payment can significantly increase your credit utilization, which is the amount of credit you're using versus your limit. This can negatively impact your score.
• Payment History. Consistently making on-time payments is crucial for a healthy credit score. A missed payment to either your loan servicer or your credit card company can cause significant damage.
• Increased Debt. Shifting your student loan balance to a credit card transforms one type of debt into another, often with a much higher interest rate. This can make it harder to pay down your overall debt.

Alternative Ways To Pay Aidvantage

Direct Debit (Auto Pay)

One of the most common alternatives is enrolling in Auto Pay, which authorizes Aidvantage to automatically deduct your monthly payment from a checking or savings account. This set-it-and-forget-it approach ensures your payments are always on time. As an added incentive, many borrowers who sign up for direct debit qualify for a 0.25% interest rate reduction, which can lead to significant savings over the life of the loan.

Manual Payment Options

For those who prefer more direct control, Aidvantage accepts one-time payments through its online portal or by phone using your bank account details. You can also mail a check or money order for your payment. These manual methods offer flexibility, allowing you to make extra payments toward your principal or adjust the payment amount as your budget allows, without being locked into a fixed automatic withdrawal schedule.

Choose the Right Card to Pay Aidvantage

If you're making payments to Aidvantage, using the right credit card can make a significant difference, potentially offering rewards or better interest rates. With nearly 3,000 cards on the market, finding the perfect one can feel overwhelming. Kudos simplifies this process, helping you find your credit card match by comparing options based on your personal preferences, whether you're looking for 0% APR, cash back, or travel rewards.

For those wanting to maximize their card benefits, Kudos is the premier free tool for online shoppers. We also have a special offer of $20 after your first qualifying purchase when you sign-up for free with the code "GET20" and shop at a Boost retailer.

Frequently Asked Questions

Are there fees for paying Aidvantage with a credit card?

Yes, Aidvantage's third-party processor charges a convenience fee for every credit card payment you make on your loan.

Can I set up autopay with a credit card?

No, Aidvantage's autopay service only allows for automatic debits from a checking or savings account, not a credit card.

Will I earn credit card rewards for my student loan payment?

You might, but it depends entirely on your credit card issuer's rewards program and its specific terms.