Should you use a credit card to pay for college textbooks?

It’s no secret that textbooks are expensive; for some students, textbook purchases can add hundreds of dollars to already-high annual tuition costs.

The average cost of college textbooks and supplies over the 2022-23 school year was $1,212 at four-year schools, according to the National Center for Education Statistics, and an even higher $1,467 at two-year institutions.

Fortunately, college students often have several ways to pay for textbooks and course materials. Ideally, you may have financial aid money left after paying tuition and fees. Credit cards are another option — but they’re not the best choice for everyone. Here’s when paying with a card may make sense.

If you take out federal student loans for college, you can use that money to pay for textbooks. Books are considered a qualifying expense at schools participating in the federal student aid program.

Often, you’ll receive that money directly, though it can vary depending on your university. Participating schools must provide a way for you to get your textbooks and supplies using any leftover federal aid by the seventh day of your term, according to the office of Federal Student Aid.

But there’s an important caveat: Your federal student loan might not be enough to cover additional costs outside of tuition and fees. If it is, this is probably your first and best option to pay for books and other school supplies. Otherwise, you may need to consider other ways to pay.

Related: Guide to FAFSA

There’s no one right answer when it comes to using a credit card to pay for college textbooks. Instead, it depends on your situation. Ideally, you should consider using your student loans, college savings, or cash first. Credit cards typically have very high interest rates, so you could end up paying expensive interest charges if you can’t repay your full balance right away.

That said, paying by card could be a stop-gap if you’re awaiting an upcoming federal aid payout. Alternatively, some credit cards offer 0% introductory APRs for a year or more. With these cards, you won’t pay interest on your balance as long as it’s fully repaid by the end of the introductory period. However, most of these cards require good or excellent credit to get approved.

Here’s a closer look at when paying by credit card could make sense versus when it probably doesn’t.

You can afford to repay your full balance at the end of your statement cycle

Your federal aid hasn’t been disbursed yet, and you need to temporarily cover the cost

You have an existing 0% introductory APR credit card or can qualify for one, and have a plan to repay your balance before the introductory period expires

If you have the cash to pay your balance in full by the due date, choosing a rewards credit card could help you save on costly textbook purchases. For example, the Blue Cash Everyday® Card from American Express earns 3% cash back on up to $6,000 spent each year on U.S. online retail purchases, in addition to other rewards categories. If you spend around the average $1,200 on textbooks this year through an online bookseller (like Amazon), that’s a potential $36 in savings on textbook spending alone — as long as you can avoid interest charges on the purchase.

In addition to rewards, a lengthy 0% APR period can help you repay your textbook purchase over time without taking on interest. The Chase Freedom Unlimited® earns a flat 1.5% cash back on all non-category spending. For your $1,200 spent on textbooks, that’s about $18 back in your pocket. But it also offers 0% APR on new purchases for 15 months after account opening (18.99%-24.99% variable APR after the intro period). As long as you can pay off your textbook purchase within that time, you can maximize rewards without interest.

Before you apply for a new rewards credit card, remember: You’ll have the best chances of qualifying with a solid credit history and good credit score. If you’re still working on building your credit, you may want to consider a secured credit card or student credit card instead; these cards also sometimes have rewards programs that can offer savings on your regular spending.

Whenever possible, avoid making purchases you can’t afford with a credit card. It’s easy to quickly accrue credit card debt with high interest charges. Instead, turn to federal financial aid, 529 savings, or cash first. Even private student loans will have lower interest rates than a credit card in most cases.

If you have no other options and must charge textbooks to your credit card without paying the balance in full, do what you can to lower costs. Consider borrowing or renting your books, searching for free digital versions online, buying used books, checking off-campus bookstores, or even sharing an expensive textbook with a friend.

Then, make it a priority to pay off any credit card balance you have as quickly as possible to minimize interest costs.

Learn more: 5 smart ways to save money on back-to-school supplies

1. Grants and scholarships

If you’ve got time before school starts, research grants and scholarships to help cover specific college costs like textbooks. This is an excellent option because you generally aren’t required to pay that money back.

Ask your school’s financial aid office about textbook-focused aid, or search on sites like FastWeb or Bold.org for potential opportunities. You can also research organizations offering awards specifically for textbooks, such as the Council on Social Work Education and the Wilhelmina Foundation.

If you’re the beneficiary of a 529 college savings plan or have other savings set aside for school, consider using that money to pay for books. Doing so could be better than taking on additional debt or using a credit card, as there’s no risk of accruing interest. Just be sure you budget sufficient savings to cover book costs without stretching yourself too far financially.

Private student loans may help fill the gap if federal student aid isn’t enough to pay for your necessities. Many private lenders let you borrow up to the full cost of attendance, which usually includes books, supplies, and other college expenses.

These loans have flexible repayment terms and lower interest rates than credit cards, though typically not lower than federal student loans. Borrowers who apply with a co-signer often get the most attractive rates.

If you have existing private student loans, consider using some of that money to pay for textbooks. If you don’t, make sure you consider all other payment options before taking on new debt, especially if you don’t have someone to co-sign your loan.

Learn more: 5 smart ways to save money on back-to-school supplies

This article was edited by Alicia Hahn

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