Is It Worth the Fee? A Guide to Using Large Bills to Hit Credit Card Sign-Up Bonuses
Earning a massive influx of travel points or cash back is a highlight for many savvy credit card users in the United States. The most efficient way to do this is by securing a "sign-up bonus" (SUB)—a lump sum of rewards granted after you meet a specific spending threshold within a few months of opening a card. However, meeting a $4,000 or $6,000 requirement can be daunting if your regular monthly expenses are low. This leads many to consider a "power move": using a large, recurring bill—like a student loan—to bridge the gap. But with third-party processing fees in the mix, the math isn't always in your favor. Here is how to determine if the "fee for rewards" trade-off is actually worth it. The Cost of the "Middleman" Most student loan servicers and educational institutions do not allow direct credit card payments. To bypass this, borrowers often use third-party payment services. These platforms charge your credit card for the loan amount and ...