529 Plan Credit Cards
A 529 plan is a savings plan that is used for saving towards future college costs, and offers a variety of tax-advantages over other forms of savings. It makes sense then, that families with children are opting to use credit cards with rewards that are tied into 529 plans. This style of rewards credit card is best used when the card owner uses the 529 rewards card to make all of their purchases, and then watches as the rebates drop into the 529-college savings account.
Considerations for 529 Rewards Credit Cards
If you are unable to pay off your entire monthly balance each month, you will not benefit from a 529 rewards credit card. The interest you pay on the card will almost always be higher than the amount of rebates you earn if you carry a balance from one month to the next.
