Should you use a credit card to pay for your college tuition?

Many credit cards offer great privileges for cardholders to use them. In addition to fraud protection and the ability to buy now and pay for your purchase later (do not care if you pay your balance before the monthly payment cycle is closed), many credit cards can help. Every dollar spent you spend 1% to 3% thanks to the point programs and rewards.

Spending big amounts of money means earning more rewards. So when it comes to paying college tuition, can run you thousands of dollars per semester, it's only natural to ask: Should you charge your credit card?

Short answer: OMG no, do not do that! This is why ...

Most colleges charge conveniently

Using a credit card can actually increase your college expenses. Many universities charge averages of 2.75% on average to accept your tuition fees through a credit card fee. If a semester costs $ 10,000, that means paying $ 275 just for credit card payments.
And there are not any rewards you can make that will compensate for that loss. Most cashback cards offer 1% return when making a purchase. That means you only earn $ 100 in refunds for $ 10,000.

Most schools do not cut that amount. Fees include the cost of working with a payment processor to accept your payment and the school transfers that fee to you if you choose a credit card to pay for your college fees.

Credit card interest is not high enough to cover you.

Bringing college credit to credit means the risk of high-interest charges comes with most credit cards. The average APR on your credit card is 20.90%. The card usually rates a bit better with an average APR of 15.99%, but not so much for.

If you need to pay your college fees over time, paying with a credit card will cost you more time than getting a loan through a student loan. Both subsidized and non-subsidized loans to universities have an interest rate of just 3.76%.

Your credit score will have one visit

Another reason to go with a student loan rather than putting college tuition into a credit card? Student loans are installment loans. The credit card is a revolving credit line. And when it comes to your credit score, this difference is important.

Credit reporting agencies look at these two types of credit differently. Large installment loans like mortgages and student loans are not necessarily "bad" if you work regularly to pay your balance. However, recharging and keeping a large balance on your credit card will ruin your score.

That's because your credit usage will be too high if you place your college tuition on a credit card. This ratio is the amount of credit you have compared to the amount you use. You should always aim to keep that amount at 30% or less on revolving credit lines.

Should you use a credit card to pay for your college tuition?

Wish you find a good way for yourself.

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