Should I take out a student loan or pay with a CC?

Anonymous · ‎03-02-2015

Hi, I'm currenlty in a CC and financial aid is getting strict so I will have to take out a loan from now on to cover my tuition. Roughly, 1,000 a semester. Not much I know but I don't make much at my part time so I have 2 options:

Take out a subsidized student loan (4.66% + 1% origination fee)

or

Put my tuition each semester on my Chase CC that has 0% interst for 14 months. (12months remaining)

Im quite stuck on this decision because I dont want to mess up my credit. Some say loans are good, others say thier bad. I just don't know.

If i went the loan route it would let me pay the loan off with time and not so much with the credit card. I wanted to take out roughly 2500 to cover tuition and books for summer and fall semester.

Thank you for any and all replies

Jerry45 · ‎03-02-2015

Depends how much your credit limit is first of all. If Tuition is 1k, then you need think Utilization on the card.

Anonymous · ‎03-02-2015

My limit on that card is 1.2k together i have a limit of 6.3k
I figured its' about 14% util. If i keep my other cards at zero.

The loan is attractive to me because I can keep the extra money in a savings account offering 1% back until august when i'd have to pay for my fall term.

Anonymous · ‎03-02-2015

If you're pretty responsible I would say take out the loan. If something should happen and you're unable to pay you have far more options with the loan than the cc. If it's backed by the government you have some built in protections. Plus having a paid student loan will look good on your credit. Take the loan and start putting money aside to pay for it now. The little bit of interest you will pay on it will be worth it just for the positive TL on your credit report. If you're not responsible don't take out the loan or use your CC. Apply for grants, ask your parents for the money, get a part time job, etc.

Anonymous · ‎03-02-2015

Thank you for the reply. I think i'll take the loan Like you said if something happens i can be more secure about paying interest with the loan.

Anonymous · ‎03-22-2015

@Anonymous wrote:
Thank you for the reply. I think i'll take the loan Like you said if something happens i can be more secure about paying interest with the loan.

If you take the loan, make payments on it now. My son took out 1 loan and I have him paying it back now, before it accrues any interest or fees. It should be PIF by the end of the year. Good luck!!