There are important considerations to think about before attempting to pay tuition with a credit card. We outline 4 quick points to think about before you do this.
- If your school participates in the federal student aid program , you can qualify for loans at a much lower interest rate than the APRs associated with credit cards.
- Most schools charge a fee to use a credit card, which adds to the cost of tuition you’ll pay.
- Unless you’re sure you can pay the balance in full when the bill comes, you’re better off leveraging student loans which have no prepayment penalty.
- If you’re in a strong cash position and you want use your credit card to qualify for bonus points, or airline miles, or an introductory 0% credit card offer (and again, you plan to pay the card in full anyway), then it may make sense.
Just make sure the rewards outweigh the risk.