4 Expenses College Students Should Never Put on a Credit Card

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College students need to be careful not to get into credit card debt. Learn which expenses it’s best not to charge. 

College students can get credit cards if they have a parent willing to cosign or if they have proof of income sufficient to pay the card. And getting a card in college can sometimes make sense, as students can begin building credit and earning rewards for essential spending.

RELATED: Best Credit Cards for Students

It’s important for young people to use their cards wisely, though. And that means not putting these four expenses on their card.

1. Spring break costs

Spring break travel can be expensive. According to Squaremouth.com data, the average cost of an insured spring break trip was $5,606.05 in 2023. But while you can make great memories on spring break, you shouldn’t take a costly trip unless you can pay for it out of your bank account.

If you charge a trip on your credit card, it could take you years to pay it back, especially with credit cards charging high interest rates and imposing low minimum payments. Do you really still want to be paying for those margaritas you don’t even remember drinking when you’re 30 and trying to buy your first house?

Instead of splurging on a costly trip, consider taking turns with your friends visiting each other’s hometowns and playing tour guide. As long as your parents don’t mind providing a free place to stay, you’ll spend a fraction of the amount while still making great memories.

2. Medical expenses

Medical expenses are a necessity, but you should aim to avoid charging them on a credit card if at all possible. Instead, check with your school to see if it offers a school-based health center that might have more affordable care.

Or, if you do need to pay for medical services you can’t afford to cover all at once, ask about starting a payment plan with your care provider. You’ll likely pay much less interest if you work out a payment plan directly with the provider than if you use your credit card.

Medical debts are also treated differently on your credit reports. Paid medical debts that were in collections and unpaid medical debts in collections that are less than a year old are not displayed on your credit record, nor are collections activities for medical debts for less than $500. This is not the case for credit card debt, as collections activities can be reported immediately and remain on your account for up to seven years after the first missed payment.

3. Entertainment expenses

You deserve to have fun in college. But, just like with a spring break trip, it’s simply not worth it to charge nights out when you’ll get stuck paying a ton of interest and will be forced to cope with these debts as you’re trying to get your adult life started.

RELATED: How to Budget in College

Many campuses offer free events, so check them out to fill your calendar with fun that won’t cost you a fortune. And look into local places that offer student discounts when you do want a night out, so you can keep costs down.

4. Vehicle purchases

Finally, you’ll want to avoid putting any portion of a car purchase on a credit card unless you can pay off the bill in full when the statement comes. That’s because there are cheaper ways to finance a car. As of August 2023, the average interest rate on a credit card was 21.19%. Car loan rates are typically well below this, and qualified borrowers are often able to get rates below 10%.

Of course, you may not want to borrow for a vehicle at all if you can get by on public transportation or walking. You can get your car once you have a post-college job and are better able to afford a down payment, qualify for an affordable car loan, and cover all the costs associated with vehicle ownership (like auto insurance).

By avoiding putting these four expenses on a credit card, you can make sure you don’t leave school with debt that you regret.

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