Credit Card eZine - News and Articles about Credit Cards

Rewards Credit Card Deals That Contribute to College Savings Plan

2008-02-15

Rewards plastics enable us to make use of our spendings. That's really great to make the most of your card and save a lot on purchases you make every day. Variety is the mother of enjoyment and rewards credit cards can serve a good example to this statement.

The cardholders of rewards plastics may get free airline tickets, free stays at hotels, discounts and other perks, not to mention exceptional rewards for adult dreamers who still want their most wished-for dreams come true. However, there are a lot of consumers who are highly concerned about their children' education. And credit issuers have something to offer for this category of credit users, i.e. so-called college fund rewards credit cards, plastics that contribute to a 529 plan.

For families with children, these credit card deals are a smart choice. However, the choice of college savings credit cards is not so big. There are several rewards plastics with this option. Let's take a closer look at these cards and try to find out how they actually work.

Like with any rewards credit card, you will benefit from a college fund plastic only if you pay off your balance in full every month. In general, these cards come with rather generous rebates, but pay close attention to rewards limits. Do a little research to find out which card gives you more rewards in comparison with other ones.

There's one more point to remember while making college fund rewards card applications. Keep in mind, most 529 rewards credit cards are tied with specific 529 plans. So, if you haven't chosen any savings plan for your child's tuition yet, you are free to choose between plans offered in credit card agreements.

Take for example, Citi Upromise MasterCard! This college fund plastic is probably the best choice for parents who bother their minds about their kids' education. You'll be surprised to know that this card offers a generous 2% rebate on gas purchases, 1% on all other purchases, and unbelievably great 10% rebate at thousands participating grocery stores and drug stores. Turn your everyday credit purchases into college savings for your kids' future.

On top of that, when applying for this card, you may open a college saving at the same time. This way, you kill two birds with one stone - you obtain a plastic with no annual fee, and beneficial rates and you start saving for your child's tuition.

Fidelity 529 College Rewards Card by MBNA offers a 2% rebate on credit card purchases. Besides, you will be able to earn a maximum rebate of $1,500, and that's not bad, really. The rebates earned are automatically dropped into your college savings plan. However, these rewards programs are available only in a few states, including Delaware, Arizona, Massachusetts and New Hampshire.

In truth, the idea of applying for a college rewards plastic is not bad, but don't forget about general rules of credit card management. All rewards plastics have a bit higher interest rates in comparison with regular plastics. And college fund rewards credit cards are no exception. So, make sure that you will be able to pay off the entire balance in full each month. Moreover, these cards have annual limits, so compare the cards before applying for a college savings rewards card.