There’s a wide array of rewards you can earn by paying bills with a credit card: [tag]frequent-flier miles[/tag], [tag]cash back bonuses[/tag], gift cards, etc. In fact, according to CNN/Money, there are some 20,000 different reward credit cards to choose from. Parents(and grandparents)concerned about their children’s education may want to check out the excellent college credit card programs that help you build college savings by contributing a percentage (typically, 1% or 2%) of your purchases to a tax-advantaged [tag]529 college savings plan[/tag].

529Reward.com helps you sift through marketing materials, compare alternatives, and find the college credit card reward program that’s best for you. It should be pointed out that the college credit card reviews are done from the vantage point of a user who pays the outstanding credit card balance in full each month. This means, for example, that card features like the APR are not heavily weighted. This follows from our belief that college credit cards are best suited for families that use their credit card as method of payment not as a source of credit.

The keys to using a 529 reward credit card effectively are:

• Select the college credit card reward program best suited for you and make it your card of choice for paying family expenses. – Using one credit card exclusively will help maximize the 529 rewards you earn.
  Try to use the card whenever you can in place of cash or checks. – Look for non-traditional places to use your card (e.g. utilities, insurance companies, government agencies). More and more these organizations are accept plastic payments.
• Avoid altering your buying habits just to earn rewards. – Marketeers who come up with credit card rebates know many people will spend more if they have reason to “feel good” (i.e. saving for their child’s college education). Aim to be smarter than the average bear and not fall into this trap!
• Involve family and friends. – Grandparents, family members and friends who have a college credit card with rewards can direct their rewards to go to your child’s account. This is a powerful program feature that should not be overlooked.
• Avoid carrying credit card balances. – 529 rewards earned at 1% or 2% quickly dissipate when you are paying 10% to 13% interest on even a small balance. For rewards to accumulate effectively, it is essential that you use your 529 reward credit card as simply a substitute for cash payment and not as a source of additional credit. This college credit card rewards calculator will help you better understand the costs and benefits of credit card rewards.