Tuesday, December 27, 2011

Put Tuition Payments on your Credit Card

Put your tuition payments on your credit card.  For many, there is no single bill bigger than tuition so why not get free money!  Even if you are getting loans, you should still pay the tuition bill on your credit card.  Then, pay your credit card bill with your loan money.

The credit card you use should have some sort of rewards program (see my other post to see which credit cards are best).

For example, if your tuition is $30,000 a year, if you have the fidelity american express credit card you will get back 2% of the bill, which is $600.  At 1%, you still get $300 back.  If you just used your loan money to pay the school directly, you get back nothing.  It's a no brainer.

Even if your credit limit is not high enough to cover these expenses ,you can normally still pay with your credit card.  Once you have your loan money, prepay your credit card company before you charge the tuition.  Many cards will then add to your limit based on how much you have paid them.  For example, if you have a $1,000 limit, if you paid $30,000 to the credit card company, you will now have a limit of $31,000 until you use your credit!  You are now able to afford paying your tuition on your credit card and have made $600 in the process.