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Can You Pay Mohela with A Credit Card?
July 1, 2025
Quick Answer
Mohela does not accept direct payments from a credit card for student loans.
Should You Pay Mohela With A Credit Card?
Consider the pros and cons before using a credit card for your Mohela payment.
Benefits
- Earn rewards. You could accumulate points, miles, or cash back from a large student loan payment.
- Bridge cash flow gaps. A credit card can cover your payment if you are temporarily short on funds.
- Utilize 0% APR offers. A new card with an introductory 0% APR can provide a short-term, interest-free way to manage the payment.
Costs
- Processing fees. Third-party payment processors often charge a convenience fee that can offset or exceed any rewards earned.
- High interest rates. If you carry a balance, your credit card's interest rate is likely much higher than your student loan's rate.
- Debt transfer. You are not paying down your loan principal, but rather shifting the debt to a different lender.
- Loss of federal protections. Converting federal loan debt to credit card debt means losing access to programs like income-driven repayment and loan forgiveness.
How to Pay Mohela With A Credit Card
Paying your Mohela student loan with a credit card requires a few extra steps, but it can be a strategic way to earn rewards. Here’s how to approach the process.
Confirm Payment Options: First, verify Mohela's current policy on credit card payments. Most federal loan servicers do not accept direct credit card payments, so you will likely need an alternative method.
Find a Third-Party Bill Pay Service: Research reputable third-party payment services that allow you to pay student loans with a credit card. Be aware that these services typically charge a processing fee for each transaction.
Choose the Right Card: Select a credit card that offers rewards that will outweigh the third-party service fee. To find a card that maximizes cashback or travel points, you can use the Kudos explore cards tool to compare your options.
Execute the Payment: Once you've chosen a service and a card, follow the platform’s instructions to schedule your payment to Mohela. Double-check all details, including the payment amount and processing dates.
Pay Your Credit Card Bill: To avoid high-interest debt, pay off the credit card balance in full before the due date. Letting interest accrue will negate any rewards you earned from the transaction.
Impact On Your Credit Score
While you can't pay MOHELA directly with a credit card, using a third-party service to do so can affect your credit. Here are a few key factors to consider before moving forward.
- Credit Utilization Ratio. Charging a large loan payment can increase your credit utilization ratio, a key factor in your score. A higher ratio can signal risk to lenders and may lower your score.
- Increased Debt Load. You are converting student loan debt into high-interest credit card debt. This can make repayment more difficult and potentially increase your overall debt, which negatively impacts your credit.
- Potential for New Credit. Opening a new credit card for this purpose results in a hard inquiry on your report. This can cause a temporary dip in your credit score for a short period.
Alternative Ways To Pay Mohela
Set Up Auto Debit
One of the most common methods is setting up auto debit. This allows MOHELA to automatically withdraw your monthly payment from a designated checking or savings account. Besides ensuring your payments are always on time, enrolling in autopay may also qualify you for a 0.25% interest rate reduction, helping you save money over the life of your loan.
Make Extra Payments
You can also accelerate your repayment by paying more than the minimum amount due each month. When making an extra payment, you can specify that the additional funds be applied directly to your loan's principal balance. This strategy reduces the total interest you'll accrue and can help you pay off your student loan faster than scheduled.
Choose the Right Card to Pay Mohela
Paying off student loans is a significant financial step, and using the right credit card for your Mohela payments can help you maximize rewards and build credit. To find the perfect fit for your needs, the Kudos Explore Tool sifts through nearly 3,000 cards to provide a personalized recommendation. This ensures you select a card that aligns with your spending habits and helps you reach your financial goals, whether that’s earning cash back or travel perks.
For those looking to get more out of their credit cards, Kudos is the leading free shopping assistant for online purchases. Better yet, we're currently offering $20 back on your first qualifying purchase—simply sign-up for free with code “GET20” and shop at a Boost merchant.
Frequently Asked Questions
Are there indirect ways to pay Mohela with a credit card?
Yes, third-party services allow credit card payments for student loans, but they typically charge a significant processing fee.
What are the risks of paying student loans with a credit card?
You risk replacing low-interest student loan debt with high-interest credit card debt, which can increase your overall costs.
Can I earn credit card rewards on Mohela payments?
Yes, using a third-party bill pay service can earn rewards, but ensure the rewards value outweighs the service's fees.
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
