Using Credit Cards To Pay For College - Good Idea Or Bad Idea?
Paying for college tuition with your credit card may seem like a
far-fetched idea, but in reality it's an idea worth considering.
Using your credit card to pay for college tuition could possible help
you avoid debts in the future. 529 plans come in two varieties,
pre-paid and savings. 529 plans are available in all states and
the tax-exempt funds allow you to put money aside for college and there
are currently credit card offers that include the opportunity to invest
in a 529.
Fidelity Investments, UPromise, and BabyMint offer credit cards with
rebates and special incentives that can be applied to a 529 college
fund. If you would like to start a 529 plan for your child, one
of these credit cards could be a great value to you. The interest
rates are reasonable and if you pay your balance in full each month,
you can make a decent contribution to your child's college fund using
the rebates and incentives. It could be that one of your existing
credit cards includes a 529 contribution plan, so check with your
credit card companies before applying for a new card. If you
begin when your children are very young, you could possibly finance an
entire college education through the use of 529 plans associated with
your credit card.
