Some parents choose to pay their children’s school tuition by credit card rather than by check. While this makes for expensive credit card bills, some advantages may exist in this payment option as well. Consider these pros and cons of paying school tuition with a credit card to help you decide if this option may be right for you.
Remember, each person has a different financial situation, making it necessary to consider individual finances, debts, and income when making a decision like this. When in doubt, check with your spouse and your financial advisor, if applicable, before making a decision about something important such as tuition payments.
Pros of Paying Tuition by Credit Card
- You may be able to earn some rewards points through these payments.
- You may buy yourself some time to pay back a larger amount of money.
- You might be able to save a little bit of money on your tuition by paying larger sums at once, thus avoiding finance charges.
- If you can earn miles for these purchases, you can use them to fly your kids home from college for the summers and the holidays.
Cons of Paying Tuition by Credit Card
- It can be easy to dig yourself into debt by charging too much.
- You may not be able to pay back what you put on the card.
- You may have to watch your available credit since tuition payments can be quite large.
- You may have to pay a processing fee if you pay tuition by credit card.
Not all institutions may accept credit card payments for tuition. Check with your child’s high school, college, or academy to discover if payment by credit card is an option. Remember to stay on top of your credit card due dates and avoid going over your line of credit in the process.