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In general, single-digit interest rates are good, double-digit are bad.
If your credit isn’t good enough to qualify for student loans which would have much better interest rates, your credit probably isn’t good enough to get a low interest credit card. You may not even qualify for sufficient limit to cover the tuition.
Go to your bank and see what kind of terms and rates they offer.
It won’t matter what type of credit card or interest rate you get now. It WILL NOT be the same 3 years from now. Your monthly payment may start at 2% of the balance ($100), but if the CC issuer jumps the minimum payment to 4% of the balance ($200), can you afford it? If you get a $5000 limit and charge your tuition to $4500, the CC issuer might view you as a risk for a sudden jump in the debt. High risk! Can you afford a 29% interest rate on a $5,000 debt? It’s the same thing as the adjustable rate mortgages that people took out 5 years ago. They could afford the mortgage payment in the beginning, but when their rate went up, they couldn’t and had to walk away or face bankruptcy.
Any card you choose, read the agreement carefully. The agreements are always one-sided and in the CC issuer’s favor.
Major purchases and financing with a credit card is dangerous to your financial health. Regardless of what you requested, I will say, “DON’T DO IT!!!”
Whichever one you can get approved for.
You really don’t have options to choose from. If your credit isn’t good enough to get a low interest student loan then chances are nobody will let you have a credit card either.
Are you sure you can’t qualify for the above?
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June 21st, 2010 at 12:17 pm
As low as possible….same as EVERY other purchase someone makes on a credit card. My student loan interest is at 2.75%, so anything above that would be silly for me to put on a credit card.