Hi Money Minder,
Hey there, I’m 23 and working part-time, but I’ve managed to save up enough to go to community college. I was working full-time during the crazy years of Covid (2020-2023) and now I’ve got $30,000 in savings and $5,000 set aside for emergencies. I’m paying my tuition out of pocket and it’s about $2,500 per semester. Do you think it’s a good idea to use a credit card to pay for my tuition in order to build up my credit?
By the way, my credit score is currently at 773, and my goal is to reach that 800 mark.
Cheers,
Curious College Student
Response from THE MONEY MINDER:
Hello There,
Congratulations on managing your finances well and having such a strong credit score! It’s great that you’re considering ways to further build your credit, but using a credit card to pay for your tuition may not be the most practical approach. While using a credit card can help build credit when used responsibly, paying for education expenses with a credit card can come with high-interest rates that may end up costing you more in the long run.
Instead, you could continue paying for your tuition out of pocket or look into other options like student loans or scholarships to help cover the costs. These options may offer more favorable terms and lower interest rates compared to using a credit card. Additionally, continue to maintain your current responsible financial habits to help further improve your credit score over time.
Remember, hitting that 800 mark on your credit score is a great goal to strive for, but it’s important to do so in a way that aligns with your overall financial well-being. Keep up the good work, and I’m confident you’ll reach your financial goals.
Farewell from THE MONEY MINDER.
