Using CCs to pay for college courses?

WallyxD · ‎05-07-2013

So I got in over my head. Since getting my Citi with 7 months 0% apr, I've been using it and have used quite a bit of my limit. I have my AE Visa with a horrible 21% and still have more than enough available credit on that. I planned on taking a few courses over the summer and now I'm only able to use my AE Visa. I mean, since it is for a good cause, would you guys suggest I go along with paying for the courses with the AE Visa and just deal with paying the interest?

webhopper · ‎05-07-2013

Have you applied for Student Loans?

Is your tuition reimbursible by your employer?

Can you expect to pay back the tuition fairly quickly when you receive financial aid in the fall semester?

I dont believe in running up credit card bills for college courses unless you expect to pay it off soon from either your wages, financial aid, or employer reimbursements.

If you haven't already done so, you can apply for financial aid at the US government's financial aid website.

Just google FAFSA and you will find it

FICO 8:
Goal: Gardening!

Stralem · ‎05-07-2013

Summer classes aren't worth ruining your credit.

Take the time off to work and pay down your debt. You'll thank yourself after graduation.

I Have Way Too Many of These.

American Express - No CLI or Appreciation Gift in 7 Years

Citibank - Handing Out Credit Limits Like Candy

Chase - Surprisingly, Still Tolerating My Credit-Chasing Ways

Bank of America - My Newest Bae.

Everyone Else.

myjourney · ‎05-07-2013

@WallyxD wrote:
So I got in over my head. Since getting my Citi with 7 months 0% apr, I've been using it and have used quite a bit of my limit. I have my AE Visa with a horrible 21% and still have more than enough available credit on that. I planned on taking a few courses over the summer and now I'm only able to use my AE Visa. I mean, since it is for a good cause, would you guys suggest I go along with paying for the courses with the AE Visa and just deal with paying the interest?

While it is for a good reason (higher education) you need to weigh the other factors. when can you payoff? How much interest will I pay? Are there other ways to finance?

Should I apply for a 0% with a BT offer...answering these questions is probably the smartest move you can make at this time.

Keep moving forward

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?

Rhaeny · ‎05-07-2013

What about student loans????

WallyxD · ‎05-07-2013

I have applied for FAFSA, but only for the upcoming school year. As far as I can remember, there is a maximum amount you can borrow for your four years of schooling, or is that not true? If so, I'll definitely need it for my two remaining years.

I definitely didn't expect to let my CC balance just sit there, as I would've paid little by little by myself, and would have asked my mom and grandmom if they could help me in any way they could.

As far as applying for a 0% BT or a 0% introductory apr, I'm in the garden, and have a ton of INQS on my report so that's not an option.

And just so you guys know, I'm only enrolled in community college as of now, and I think tuition is like 120 or 130 per credit hour, and I planned on taking two or three courses, so it isn't a lot of money.

But if you guys still think I should change the information on FAFSA to put that I'll be in school for the summer, I guess I can do that.

Anonymous · ‎05-07-2013

I am but will PIF. I'm doing it for the cash back. instead of cutting a check I figured swiping will give a few bucks back. You are correct on the Max loan limits also. That's another reason why I'm paying for my summer sessions out of pocket. Just put on the card what you can PIF or make a few payments to pay it off to avoid paying too much interest.

ObieGrad · ‎05-07-2013

You could try calling the AE card people and asking if they'd consider lowering your interest rate. Worth a shot at least. Also if you are not planning on applying for anything for awhile you could put as much as possible on the Citi Card and then the rest on the AE card. Your overall utilization would be the same as putting it all on the AE card and you would benefit from the lower 0% rate till at least the end of the promotion.

If you don't have any other cards, the other issue might be if you need the float for day to day purchases. If you do, carrying a balance on both cards will eliminate any grace periods (once Citi 0% is done). This means paying interest on both day to day purchases and the classes.

Does your school offer a payment plan?

Rhaeny · ‎05-07-2013

@WallyxD wrote:
I have applied for FAFSA, but only for the upcoming school year. As far as I can remember, there is a maximum amount you can borrow for your four years of schooling, or is that not true? If so, I'll definitely need it for my two remaining years.

I definitely didn't expect to let my CC balance just sit there, as I would've paid little by little by myself, and would have asked my mom and grandmom if they could help me in any way they could.

As far as applying for a 0% BT or a 0% introductory apr, I'm in the garden, and have a ton of INQS on my report so that's not an option.

And just so you guys know, I'm only enrolled in community college as of now, and I think tuition is like 120 or 130 per credit hour, and I planned on taking two or three courses, so it isn't a lot of money.

But if you guys still think I should change the information on FAFSA to put that I'll be in school for the summer, I guess I can do that.

Its a specific total amount over whatever amount of years that you go to school. It took me many many years to finish but since I didn't use up the total amount available I was able to get the student loans. I think the amount might be around $60K for undergrad but don't quote me. You have a certain amount for your undergrad and another amount for graduate and professional. I think you should check with your school's financial aid office before you do this. When you get student loans the interest is much lower and you have more flexibility on ability to pay...meaning that you can request deferrment or in school status to reduce or eliminate a monthly payment during hard times. You can't do that with a CC.

WallyxD · ‎05-07-2013

@ObieGrad wrote:
You could try calling the AE card people and asking if they'd consider lowering your interest rate. Worth a shot at least. Also if you are not planning on applying for anything for awhile you could put as much as possible on the Citi Card and then the rest on the AE card. Your overall utilization would be the same as putting it all on the AE card and you would benefit from the lower 0% rate till at least the end of the promotion.

If you don't have any other cards, the other issue might be if you need the float for day to day purchases. If you do, carrying a balance on both cards will eliminate any grace periods (once Citi 0% is done). This means paying interest on both day to day purchases and the classes.

Does your school offer a payment plan?

Ahh I completely forgot about that. I know for sure that they do payment plans for the fall and spring semesters. I'm just not sure about for summer courses, but I'll definitely give them a call about that. I'll also call GE and ask for an APR reduction and hopefully they see my reason for the request as a good enough reason to lower it.