Paying tuition with a credit card: Is it possible?

It’s common to pay for college tuition with a check — but can you pay with a credit card?

The answer: It depends on your school. Here’s what to look out for when considering paying with plastic.

Can you pay tuition with a credit card?

Policies vary by school, but many colleges allow tuition payments via credit card. The best option is to contact the bursar’s or registrar’s office at your school and ask if credit card payments are allowed.

Another alternative is to Google the answer yourself. Here’s how:

1. Type the university name followed by tuition credit card in Google’s search bar.
2. The first result on Google will often have the answer whether that particular university accepts credit card payments.

Should you pay for your tuition with a credit card?

This largely depends on your financial situation and whether the university charges any fees for credit card payments. If the university doesn’t charge credit card fees and you have a rewards card, paying your tuition with plastic is definitely worth considering.

What to watch out for

As said before, paying your tuition with a credit card can cost you extra. But there are other downsides as well. Here’s what to keep an eye on:

• Credit card fees. Unfortunately, many schools will add a 2% to 3% surcharge when you use a credit card for school tuition. While that doesn’t sound like much, it can hurt: On a $5,000 tuition bill, you could pay around $150 just in credit card fees.
• Credit card interest
  The average credit card APR is around 17%, which works against you for a big-ticket purchase such as tuition. You don’t want thousands of dollars of tuition to rack up interest at this rate, as this could put you deep in debt.
• No payment flexibility. With a credit card, payments are usually inflexible: You must make at least the minimum payment on time, or you’ll probably get a late fee and potentially a hit to your credit score.
• It could hurt your credit score. Missing a payment isn’t the only thing that can hurt your credit. Making a large purchase with your card increases your utilization ratio. If the ratio goes above 30%, it could negatively affect your credit score.

Benefits of paying tuition with a credit card

Paying your tuition with a credit card can work in your favor at times. Here are a few ways paying tuition with a credit card can help. You can:

• Earn a card’s signup bonus.

  Many card signup bonuses require a minimum spend of thousands of dollars. By paying your tuition, you can easily clear the signup bonus requirements. Just make sure credit card fees don’t eat up what you’ll earn in cash back, points or miles.

• Earn rewards.

  If your college doesn’t add a convenience fee, you could scoop up rewards from paying your tuition. For example, a card like the Citi® Double Cash Card earns up to2% back on all purchases (1% cash back when you buy plus an additional 1% back after you pay off your balance). For a tuition payment of $5,000, you’ll get $100 back.

• Earn valuable perks.

  Some credit cards come with valuable perks that are typically hard to get. One such perk is the Southwest Companion Pass. This perk lets you bring one companion to fly with you on flights booked through Southwest Airlines only by the cost of taxes and fees. What’s cool about this perk is that it lasts for the remaining of the year when you earn the pass plus the entire following year.

• Pay with 0% interest.

  Some credit cards come with a 0% intro APR period on purchases, which can last as long as 20 months. This is basically an interest-free loan. Just be sure to pay your balance before the intro APR period expires or you’ll start accruing interest on any unpaid balance.

Alternatives to using a credit card to pay tuition

Instead of using a credit card, consider these methods for paying your tuition:

• Direct deposit.
• E-check.
• Personal check.
• Money order or cashier’s check.

A money order costs about a dollar, and you can get one at grocery stores or your post office. Visit your local bank for a cashier’s check, which can cost $10 or more.

Use your credit card through payment services

If your college doesn’t allow credit cards for tuition, you may have luck with a payment service. Plastiq, for example, collects your credit card payment and forwards a check on your behalf to your school.

Payment services generally charge a 2% to 3% fee for credit card transactions, and you’ll need to factor in up to seven business days for your school to receive your payment.

Compare Student credit cards

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Name	Product	Filter values	Minimum deposit required	Purchase APR	Annual fee	Recommended minimum credit score
Deserve® Edu Card			N/A	18.74% variable	$0	580	Designed for college students to build credit history and earn rewards.	Apply now View details	Compare	loading Fetching your data...
Citi® Secured Mastercard®			Starting at $200	22.49% variable	$0	New to credit	A no annual fee secured card for people who are new to credit or have limited credit history.	Apply now View details	Compare	loading Fetching your data...
Petal® 1 "No Annual Fee" Visa® Credit Card			N/A	19.99% to 29.49% variable	$0	550	A high-limit no-annual-fee credit card that's ideal for rebuilding scores as low as 550. See if you prequalify with no impact to your credit.	Apply now View details	Compare	loading Fetching your data...

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Bottom line

Using a credit card to pay for tuition can be convenient, and it can bring you a good chunk of rewards if your school doesn’t add a surcharge. If you use this payment method, pay off your tuition debt soon to avoid heavy interest. Alternatively, consider a student loan.

Frequently asked questions

• Is my credit card surcharge refundable?

  In nearly all cases, a credit card surcharge is not refundable.

• Are colleges allowed to add surcharges for credit cards?

  For the most part, your college or university is allowed to add a surcharge for credit card payments. In some states — such as California, Florida, Kansas, Texas and New York — surcharges are illegal. Learn more about credit card surcharges.

• Why should I consider a student loan over paying with a credit card?

  Both are options if you don’t have the money to pay your tuition right now. But a student loan is a considerably better one because it may have a much lower interest rate.