Best Credit Card to Pay Tuition: Best Perks

[mshheaddoc]

I've never had a credit card, so I never thought about using it to my advantage. I don't think it will affect my life significantly, either way.

Well to help establish a balanced credit history credits card are a necessary evil.


Oh and credit reports do NOT state if you are employed or unemployed. They try to keep up with employers. Usually when applying for a credit card they will only ask you for your annual income, not necessarily your employers information. This also depends on the creditor.

Please remember that alot of these cards are capped so you can only get $X amount back (like with cash/rewards) a year. Or have various restrictions. Some like discover tout that they have 2% cash back but you have to have spent either $10-$15,000 on your card to get that 2% back. Read the fine print CAREFULLY! There is a site that was posted that gives all this information. I'll see if I can find it.

---

Members don't see this ad.

 

[mshheaddoc]

HA! Found the link. This was discussed last year about this time. I took some of the advice from those members and got a few of those cards

Here's the thread


They mention some sites I would recommend visiting like this one! (HIGHLY RECOMMENDED!)

and remember not to rack up credit card debt

 

[anamarylee]

I've never had a credit card, so I never thought about using it to my advantage. I don't think it will affect my life significantly, either way.

It will when you go ask for a loan, be it a car loan or a mortgage, since you are not building any credit history. From personal experience, it makes a huge diference if you have excellent credit when you need it.

 

[etf]

i have yet to make a penny of salary in my relatively short life, but with my credit i could buy a yacht tomorrow - and not one of those small ones; i'm talking larry ellison style. credit cards are great if you know what you're doing. they can get you into a lot of trouble if you don't.

 

[OSUdoc08]

It will when you go ask for a loan, be it a car loan or a mortgage, since you are not building any credit history. From personal experience, it makes a huge diference if you have excellent credit when you need it.

Paying back school loans and being a physician is credit history enough.

 

[mshheaddoc]

Paying back school loans and being a physician is credit history enough.

Not always in the general sense but if you know where to go then you can usually find some one to help. But don't think people will throw it at you. Most physicians I worked with (at my previous business jobs) had the worst credit and DID have issues getting loans at times. That was misuse of credit not lack of credit.

 

[teninepit]

Paying back school loans and being a physician is credit history enough.

There you go again OSU talking about financial matters you dont know jack about. To all those others out there, I have had a long discussion with OSU about credit and the need to build a credit score but OSU knows it all, dont waste your time with him about this matter.

 

[etf]

There you go again OSU talking about financial matters you dont know jack about. To all those others out there, I have had a long discussion with OSU about credit and the need to build a credit score but OSU knows it all, dont waste your time with him about this matter.

whatever. if you want to survive in this society, you need credit. unless you have some serious cash, and don't need things like home/auto/life insurance. you might have a hard time finding a place to rent, but you won't need one since you have the money to buy a house outright. can't take advantage of 0% auto financing (investing the money elsewhere/paying it back with tommorrows dollars), but who cares? good luck getting a cell phone/utilities contract without having to put down a deposit. don't worry about getting 5% back on gas/groceries that you're going to buy anyway. i cringe when i see people pay with cash/check.

 

[scotttennis]

i have yet to make a penny of salary in my relatively short life, but with my credit i could buy a yacht tomorrow - and not one of those small ones; i'm talking larry ellison style. credit cards are great if you know what you're doing. they can get you into a lot of trouble if you don't.

I'm in a similar situation. My credit limit is over 15 times my current annual salary. I've always paid my balance in full and on time. I thought that with 81-months of on time payments I would have a good credit score. I paid the approx. $5 to see what my credit score was and found out that I had a "very low credit score." Further my report read: "Prepare yourself to pay high fees and interest rates. Additionally, lenders almost certainly will require you to make a large deposit or down payment. Do not expect to receive a high loan amount. Concerning credit cards, it may be difficult for you to qualify for any card. If you do qualify for credit card, you will probably have a very low credit limit with extremely high interest rates."

I know that my credit score will go up as I get more of an income and pay back the loans that I've just now taken up. However, it was very discouraging to see that my score was as low as it was. I don't even know how I could do anything different to improve my score. This credit card is my only account with the credit reporting firms, and I have nothing bad on my record. (The low score may have something to do with having only a single credit reporting account and it being open for a relatively short period of time....at least I hope that is the case.)

 

[etf]

I'm in a similar situation. My credit limit is over 15 times my current annual salary. I've always paid my balance in full and on time. I thought that with 81-months of on time payments I would have a good credit score. I paid the approx. $5 to see what my credit score was and found out that I had a "very low credit score." Further my report read: "Prepare yourself to pay high fees and interest rates. Additionally, lenders almost certainly will require you to make a large deposit or down payment. Do not expect to receive a high loan amount. Concerning credit cards, it may be difficult for you to qualify for any card. If you do qualify for credit card, you will probably have a very low credit limit with extremely high interest rates."

I know that my credit score will go up as I get more of an income and pay back the loans that I've just now taken up. However, it was very discouraging to see that my score was as low as it was. I don't even know how I could do anything different to improve my score. This credit card is my only account with the credit reporting firms, and I have nothing bad on my record. (The low score may have something to do with having only a single credit reporting account and it being open for a relatively short period of time....at least I hope that is the case.)

definately the case. you need multiple accounts, and they should be open for a while (2-3 years). i was lucky in that i was able to charge $30k tuition to my amex charge card (due in full every month) and pay it off the same month (with student loan proceeds), so it seems like i am able to to pay off a 5 figure sum in a month multiple times. i've even had a late payment (problem with autodebit), but if it's not 30 days late, it doesn't go on your report.

 

[dr.z]

whatever. if you want to survive in this society, you need credit. unless you have some serious cash, and don't need things like home/auto/life insurance. you might have a hard time finding a place to rent, but you won't need one since you have the money to buy a house outright. can't take advantage of 0% auto financing (investing the money elsewhere/paying it back with tommorrows dollars), but who cares? good luck getting a cell phone/utilities contract without having to put down a deposit. don't worry about getting 5% back on gas/groceries that you're going to buy anyway. i cringe when i see people pay with cash/check.

True. If you have a good credit history, you get better deals on financing home, cars, and whatever else you want.

 

[mshheaddoc]

credit limits often are bunk. So consider them evil (like myself) as I don't want that $50K card b/c if it gets stolen more headache for me to worry about. Plus I don't NEED that much.

Also with those 81 months, have you had a balance on them every month? Just having the credit helps but if it isn't used, the creditors see that and that does effect your score. Honestly you need about 5 years of solid credit history to get you in the golden including auto loans, credit lines, maybe student loans. I had some of my student loans paid for by an accident settlement and it really does help your credit score. I was in low 600's and jump to high 600's just with that (they were also close to $70K in loans too). So really everything you do, all those loans you take out for school (more they HURT you than help you at this point in your life). But using the rest of your credit wisely helps.

 

[a504n]

credit limits often are bunk. So consider them evil (like myself) as I don't want that $50K card b/c if it gets stolen more headache for me to worry about. Plus I don't NEED that much.

If it gets stolen and you report it, wouldn't you not be liable for the unauthorized charges? All of my credit cards state that I have zero liability on fraudulent charges, unless there's something in the fine print stating under certain conditions.

 

[scotttennis]

Also with those 81 months, have you had a balance on them every month? Just having the credit helps but if it isn't used, the creditors see that and that does effect your score. Honestly you need about 5 years of solid credit history to get you in the golden including auto loans, credit lines, maybe student loans. I had some of my student loans paid for by an accident settlement and it really does help your credit score. I was in low 600's and jump to high 600's just with that (they were also close to $70K in loans too). So really everything you do, all those loans you take out for school (more they HURT you than help you at this point in your life). But using the rest of your credit wisely helps.

I have had a balance all 81-months, though usually it is not that large. However, when I paid for a flight to Europe and then Central America within the same month, it was quite large. I haven't had very high balances that were do to tuition payments yet though.

 

[Polska]

credit limits often are bunk. So consider them evil (like myself) as I don't want that $50K card b/c if it gets stolen more headache for me to worry about. Plus I don't NEED that much.

Also with those 81 months, have you had a balance on them every month? Just having the credit helps but if it isn't used, the creditors see that and that does effect your score. Honestly you need about 5 years of solid credit history to get you in the golden including auto loans, credit lines, maybe student loans. I had some of my student loans paid for by an accident settlement and it really does help your credit score. I was in low 600's and jump to high 600's just with that (they were also close to $70K in loans too). So really everything you do, all those loans you take out for school (more they HURT you than help you at this point in your life). But using the rest of your credit wisely helps.

Except that the higher your credit limit.. the higher your credit score.. One of the known factors in the secret formula for calculating your credit is your credit load/ credit limit ratio.. so if you are consistantly charging $1000 and paying it off on a $2000 credit limit card.. you'll have a lower score than consistantly charging $1000 and paying it off on a $20,000 credit limit card.. Asking for a credit limit increase is a quick way to raise your credit score..

 

[almost_there]

Very strange. I have the MBNA Worldpoints card (different possible rewards -- 1% cash back, or free airplane ticket anywhere in the lower 48 states for 25,000 points (1$ = 1 point), no blackout dates), but I don't see it reviewed anywhere on the sites mentioned.

It's a great card, though. The free airplane ticket is up to $400 in value, so even better than 1% cash back! (I'm using it to get my Thanksgiving flights)...

 

[mshheaddoc]

Except that the higher your credit limit.. the higher your credit score.. One of the known factors in the secret formula for calculating your credit is your credit load/ credit limit ratio.. so if you are consistantly charging $1000 and paying it off on a $2000 credit limit card.. you'll have a lower score than consistantly charging $1000 and paying it off on a $20,000 credit limit card.. Asking for a credit limit increase is a quick way to raise your credit score..

Yes the amount of revolving credit helps but example was extreme. You need to have numerous tradelines to help you more than just one card with a high limit.

And I was referring to the fact that having a high limit can be dangerous, not referring to that limit for credit reasons.

 

[mshheaddoc]

If it gets stolen and you report it, wouldn't you not be liable for the unauthorized charges? All of my credit cards state that I have zero liability on fraudulent charges, unless there's something in the fine print stating under certain conditions.

No you are right but some justdon't want the hassle.

My parents didn't need all their cards with 100K limits so they just kept one. Same thing with my ex roomie, she lowered her limit from $75K to $25K. Its nice to have th card for emergencies but I suppose (as stated) its just my conservative opinion and less headache for you to deal with if it is stolen.

If you are getting limits of this much then you already have decent credit (probably of at least 700-750).

 

[mshheaddoc]

I have had a balance all 81-months, though usually it is not that large. However, when I paid for a flight to Europe and then Central America within the same month, it was quite large. I haven't had very high balances that were do to tuition payments yet though.

That is a positive then because that has probably helped your score. But if you want to increase, get more tradelines.

 

[beefballs]

etf what card is that 5% again

 

[etf]

etf what card is that 5% again

https://www.accountonline.com/ACQ/Chooser/LearnMore?siteId=CB&CARD_KEYS=4T4Z55K6-M

i hate citibank but i love this card.

 

[mshheaddoc]

https://www.accountonline.com/ACQ/Chooser/LearnMore?siteId=CB&CARD_KEYS=4T4Z55K6-M

i hate citibank but i love this card.

I agree. i have this card as well. Although I heard you can only get back $300/year.

 

[etf]

I agree. i have this card as well. Although I heard you can only get back $300/year.

yep. just get two.

 

[Twitch]

Got a letter from Citi stating they are downgrading the 5% cashback starting Oct 13 from 5% for groceries/gas/drug store purchases down to 2%.

I'm looking for a new card. I'm thinking Discover's Gas card look okay but ideally I'd like to have something similar to Citi Dividend or better w.r.t cash back. Any suggestions?

 

[UserNameNeeded]

Wow. Citi sucks. Good thing I never got their lame bait-and-switch card.

 

[Twitch]

Wow. Citi sucks. Good thing I never got their lame bait-and-switch card.

I've had them since 2002 and made $300 every year till now.

 

[Bobblehead]

Penfed offers a 1.25% flat rate cash back card. That's probably the best flat rate card out there that doesn't include special incentives for various categories (gas, grocery, etc.). It's available at www.penfed.org. You may have to pay $20 to join the NMFA which makes the first $10,000 you spend on the card necessary to cover that fee. Additionally you'll have to maintain $5 in a regular share account to keep your credit union membership. Their loan rates for houses are very good I'm told as it their overall customer service. One warning is that you can only pay automatically on their card using a penfed account. If you want to pay from another bank you'll have initiate a manual payment via your bank online.

For travel the best card is likely the Amex Starwood Preferred Guest card which gives you a 5,000 point bonus when you convert 20,000 point at a time to airline miles. There is an annual fee after the first year so you must decide for yourself whether the fee is worth the milage based on your spending habits.

For grocery, gas, pharmacy, etc. there are various cards out there from Citi, Chase and Discover that offer various returns greater than 1%. There are also many tiered rewards cards. For example the Chase card mentioned earlier in this thread is 2% tiered where you need to calculate your breakeven point vs. a flat 1.25% card in terms of annual spending.

 

[randomedstudent]

I've never had a credit card, so I never thought about using it to my advantage. I don't think it will affect my life significantly, either way.

Mine will affect my life significantly when I get a couple free plane tickets to use for all my upcoming residency interviews. In my mind free money/plane tickets are always good, esp. when I don't have to do anything except buy the things I would be buying anyway (groceries, gas, clothes, gifts, books, etc). You can rack up points even without using it to pay tuition which I can't do at my school.

 

[TylerRay]

Being as I work at discover card I thought I'd chime in on this thread. Discover is offering the 5% promo on tuition right now goes through sept. 30. as part of the "get more" program. Anything else purchased earns is UP TO 1% cashback meaning $0-1,500 is .25% $1,500-3000 is .50% and anything over %3,000 is a FULL 1% cashback bonus with no cap, it restarts every anniversary year of the card. Promotion BT rates on new card are at 0.0% good for a year with the option to extend for the life of the loan if 1-2 purchases are made each month (they can be for $1). I recently talked with a pharmicist doubt hes on here but if he is reading this his email ended in crx and i asked if he drove a honda....lol
ohhh and for you guys with the citi card just to let you know they are ending the 5% cashback on groceries, pharmacy, and gas, it will soon be 2%.

 

[mshheaddoc]

ohhh and for you guys with the citi card just to let you know they are ending the 5% cashback on groceries, pharmacy, and gas, it will soon be 2%.

Yeah I saw this. I'm kinda sad, although I used most of my stuff for the 1% anyways. Hard to go credit card shopping when you don't have any income

 

[UTDOC03]

I got a MERRILL LYNCH credit card and used it for all of my interview expenses and its been awesome. It's free, and you earn points towards free airline tickets. I looked into other cards that give you tickets like this and they all have annual fees, and blackout days all over the place-pain in the butt because holidays are always blacked out... You can also use the points for gift cards and merchandise (I did this for Hertz Rental cars for driving to interviews, and Hilton Hotels). I mean, it's still a credit card, but out of all of the ones I looked into, it was the best. You have to spend a bunch of money during your 4th year, you might as well put all of the expenses on one card and ust the points...I also got married that year and we put all of those expenses on the card too....

 

[okbye]

"Prepare yourself to pay high fees and interest rates. Additionally, lenders almost certainly will require you to make a large deposit or down payment. Do not expect to receive a high loan amount. Concerning credit cards, it may be difficult for you to qualify for any card. If you do qualify for credit card, you will probably have a very low credit limit with extremely high interest rates."

I just got the exact same spiel when I checked my credit score 2 weeks ago and my score was 791. Long history, never a late payment, way more open credit than used credit. I think they tell everyone that.

 

[TMP-SMX]

Get the Citi mtvU or Citi Driver's Edge. The citi mtvU uses their thank you network to get 5 points per dollar at restaurants, movie theaters, music, or renting movies. You also get 1 point per dollar on all other purchases. You get a hefty number of points for getting good grades each semester.

The Driver's Edge card gives you a 6% rebate at pharmacies, gas stations, car repairs, and car purchases for a year. After that it is 3%. Even better, you get a penny per mile driven in your vehicle. There is of course a limit but you can get a pretty nice chunk of change back to use for the exhorbitant amount of money you spend on gas.

Those are my favorite two cards. My score is roughly 750, and hopefully it goes up now that I'm actually using a card I've had since 2005 and never used. The old one expired and I want to use it and raise the credit limit.

As the others have said, your credit is very important and rewards are absolutely free money if you pay off the card each month. Spend within your limits and don't buy things if you can't afford them. That's what student loans are for.

 

[mshheaddoc]

bump

 

[Doctor Bagel]

Yeah, I have a Citi card with thank you network benefits. The one thing that bugs me about it now is that they used to have $100 Target gift certificates that you could get for 10,000 points. Now you can only get $50 Target g/cs for 6000 points. Since Target is my favorite store in the world and giving me a Target g/c is pretty much like giving me cash, this change has negated the utility of the card for me.

Now you guys probably all have this card, but I think an Amazon card is a good card for students just because we can buy all our books and supplies there, including laptops. You get 3 points for every dollar you spend at Amazon and 1 point for every non-Amazon purchase. Once you hit 2500 points, you get a $25 Amazon g/c. And like with Target, an Amazon g/c is just like cash to me because I know I'll have a need for it. Also, when I got my card, I got 6 months of 0% interest. I used it for all my application and interview expenses and left the money for it in an interest bearing account. Then I paid it all off when the 0% interest thing ended.