Weighing the Possibilities of Paying for College with Credit Cards

Credit CardCredit cards make bill paying deceptively simple. With just one swipe of a card, students can purchase all sorts of things for school, even if they don’t have any money in their bank accounts at the moment. Sometimes that’s help that students really need. But sometimes students toy with the idea of paying for their entire college experience with a credit card. Those who do so could be taking huge chances with their financial health, and they might even ruin their financial futures.

The Credit Card Trap

credit card trapCredit cards are ideal for small, unexpected purchases that a student must make right now and can easily afford in a month or two. There are no forms to fill out in order to take out these mini-loans, and paying back the balance on time can help a student to demonstrate a form of financial responsibility, and that might help a student to get mortgages and car loans from banks in the future. The student seems responsible, and there’s a credit history to check. All of this could be quite beneficial.

But credit cards can be amazingly expensive for long-term debts. According to Bankrate, the average fixed credit card rate is 13.2 percent, which is more than double the interest rate seen in federal forms of student loans. It would be wiser for students to explore their student loan options, so they can get a better deal and avoid some of the more egregious loans that could ruin their financial future.

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