New credit card brings back double the money
Laurel Road, a digital lending platform and KeyBank subsidiary, announced a new credit card on June 22nd. The Laurel Road Student Loan Cashback Card offers 2% cashback when you use your premiums to pay off student loans with most lenders. The toll free card also comes with some impressive perks and a solid welcome bonus that puts it on par with some of the best cash back credit cards out there.
The central theses
- The new Laurel Road Student Loan Cashback Card offers 1% cashback on all your purchases, but doubles when you use rewards to repay student loans.
- You can repay student loans with most government and private student loan providers.
- The card also comes with an impressive welcome bonus and an introductory 0% APR credit transfer promotion with no annual fee.
- The card is worth considering for any student loan borrower seeking help with paying off their debts.
This is how the Laurel Road Student Loan Cashback Card works
The Laurel Road Student Loan Cashback Card isn’t the first credit card to offer a better redemption rate when you use your cashback to pay off student loans. All three credit cards issued by Sallie Mae give you 25% more value when you redeem your rewards to pay off student loan debt.
But even with that bonus, the greatest value you would get with the Sallie Mae cards is around 1.56% using rewards for student loan payments.
In contrast, Laurel Road’s new card doubles the value of your rewards to 2% when you use your cashback to pay back student loans. In addition, 95% of government and private loan service providers participate, so most student loan borrowers can take advantage of this formidable benefit. (You can check the fine print on the cards website to make sure your lender or servicer is listed.)
The card also offers impressive incentives for new cardholders. First off, you’ll earn $ 500 on each eligible student loan after spending $ 5,000 in the first 90 days of opening your account. You will be hard pressed to find a better welcome deal on another credit card with no annual fee, assuming you can afford to spend $ 5,000 in three months.
You will also receive an introductory price of 0% APR for 12 months on credit transfers made within the first 60 days after opening the account. After that, the variable effective annual interest rate jumps to 13.99% to 22.99%, depending on your creditworthiness.
Should you apply for this card?
The Laurel Road Student Loan Cashback Card is nowhere near the only 2% cashback credit card available, and you can use the cashback earned on any credit card to pay off your student loan debt.
But the 2% premium rate combined with the $ 500 welcome bonus might be enough to get this card if you have a lot of student loan debt.
However, if you run out of student loans or have very little credit left, this may not be as appealing because once you’ve paid off your student debt, you get only 1% back on everything.