The Pros and Cons of Paying Loans With Credit Cards

Can help consolidate debts into one payment

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May be able to get lower interest rate than loan

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Credit card rewards can offset some costs

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Credit cards have higher interest rates than most loans

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Easy to end up paying only minimum and accumulating debt

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Balance transfer fees can eat into any savings

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Loans often have fixed payoff dates, credit card debt can linger

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Potential to hurt credit score by maxing out cards

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Requires discipline to not overspend on cards after paying off loan

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Debt settlement may not apply when paying loans with unsecured debt like credit cards

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