Most people out there don’t have $50,000 set aside to get their degree when the time comes. What many people don’t realize is that there are other ways of getting money besides a student loan. Sure, while you can borrow from your parents or even your Mom and Dad, you’re going to find that this isn’t always going to work out.
Now, have you ever thought about putting your college tuition on a credit card? If so, I wanted to give you some perks, as well as some downfalls that you should consider if you’re thinking about doing something such as this.
Perk #1 — You can get rewards:
If you spend your card wisely and you pay it off in full each and every month, you can get rewarded each time you spend a dollar. For every dollar you spend, you can get items such as gift cards, electronics and more. The key here is to make sure that you pay it off in full. If you’re going to be a student, consider resources that can help you find a card while you’re in college.
Perk #2 — Intro Balance
If you need a short term loan, an introductory rate for most cards may be attractive. You’re going to find that many cards out there will offer a 0% introductory rate for 12 months or even longer. You’re just going to want to make sure that you look for a card that has the introductory rate that best suits your needs.
Perk #3 – More than just tuition
You’re going to find that with a credit card, you can use it on more than just tuition. You’re going to be able to use it on other items such as gasoline, clothing and more. Sure, while you can dip into your college loan money, you’re going to find that this isn’t always the smartest idea. Instead, you may want to use a credit card because you’re going to get rewarded and more.
Now, there are downfalls as well. For starters, the interest rates are going to be relatively high if you don’t pay it off on time. Compared to a student loan, you may pay more than 20% on your credit card, while you only pay 5% on your student loans. This is a relatively big different.
The next thing that you’re going to want to look into is the fees as well. A credit card is going to have many annual fees, start up fees and more. Be sure to look at each and every card because each card is going to greatly vary. Be sure to understand your credit card fees.
The last thing that I would point out is that with a credit card, you’re going to have to start paying right away, while with a loan, you’re going to be able to wait until you graduate. This is going to be very convenient for those that don’t want to pay right away.
As you can see, there are many ways to save, and many ways to pay. If you do consider a credit card, be sure to factor in the perks and downfalls mentioned above.