Unlock the Secret Hack: Pay Your College Tuition with a Credit Card Without Breaking the Bank
- Chase Freedom Unlimited® (see rates and fees): This card offers 1.5% cash back on all purchases, but if you also hold a “premium” card such as the Chase Sapphire Reserve® (see rates and fees) you can convert those cash-back earnings into full Ultimate Rewards points. This is the equivalent of earning 1.5 points per dollar spent on every purchase. Since TPG’s July 2025 valuations peg Ultimate Rewards points at 2.05 cents apiece, you’re essentially getting a return of 3.1%. If the percentage fee for using a credit card for tuition is less than this amount, you’ll come out ahead by using the Chase Freedom Unlimited.
- The Business Platinum Card® from American Express: This may seem strange on the surface since the Amex Business Platinum only offers 1 Membership Rewards point per dollar spent. However, it also gives you 50% more points on purchases of $5,000 or more (up to $2 million per calendar year). So, if your tuition payment exceeds $5,000, you’ll earn 1.5 points per dollar spent. TPG’s July 2025 valuations peg Membership Rewards points at 2 cents apiece, so you’d get a return of 3% on those purchases of $5,000 or more. Again, if the fee for using a card is less than this, go ahead and use the card. As always, be sure to adjust these numbers based on your own valuations and evaluate your school’s credit card payment policy to determine whether it makes sense to incur the fee.
- Capital One Venture Rewards Credit Card and Capital One Venture X Rewards Credit Card: These cards offer unlimited 2 miles per dollar on all purchases. With TPG’s July 2025 valuations of Capital One miles at 1.85 cents apiece, this is equivalent to a 3.7% return on all purchases.
As always, adjust these numbers based on your own valuations and evaluate your school’s credit card payment policy to determine whether incurring the fee makes sense.
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