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From everyday purchases to splurges, consumers often turn to credit cards. Some even reach for the plastic to pay the rent. But is paying rent by credit card a good idea? And can you pay rent with a credit card even? The answer to both questions: It depends.

Whether you can pay rent with a credit card largely depends on your landlord’s rules, though there are potential workarounds. But even if you can figure out how to pay rent with your credit card, there are pros and cons to paying rent with a credit card that you’ll want to consider.

Do Landlords Allow Payment by Credit Card?

For renters tempted to reach for the plastic, the first likely question is whether this mode of payment is even accepted. The answer to whether you can pay rent with a credit card will depend on the landlord, though many do not allow it.

The reason many landlords don’t allow it is because accepting credit card payments causes them to incur fees. Due to how credit cards work, credit card transactions are subject to fees that are set by the financial institution that issues the card, the companies that partner with the financial institution (like Visa and Mastercard), and the processor responsible for securing and carrying out the credit card transaction.

The amount of these fees depend on a number of things, including the merchant’s total sales volume and how credit cards are processed. Businesses that process between $10,000 and $250,000 in credit card payments annually pay between 2.87% and 4.35% per transaction, according to Square. This means that if a tenant were to charge $1,000 in rent, the landlord would net about $957 to $971 — unless the cost of credit card processing was extended to the renter in the form of a surcharge. To avoid that bite, some landlords do not permit credit card payments for rent.

Even when a landlord does not allow people to pay rent using a credit card, there may be workarounds via third-party apps. These apps effectively charge renters a fee to convert their credit card payment into a form of payment their landlord accepts. Fees can range from 2.75% to 3% of every rental payment. Additionally, the landlord often has to agree to the arrangement.

Pros of Paying Rent With a Credit Card

There’s a famous old saying: “Just because you can doesn’t mean you should.” But there are some scenarios when charging the rent might make sense. Here are some of the potential pros of paying rent with your credit card.

Flexibility

Rent schedules are typically fairly rigid, with payment due at the same time each month. Though this regular schedule can be a boon for budgeting, it can be challenging for gig workers or anyone else with irregular pay periods that don’t line up with when rent is due.But if a cardholder charges the rent, that money becomes due only when their credit card bill is due, providing greater flexibility on the actual payment date.

However, it’s important to stay strict about honoring your credit card due date. Making late credit card payments can result in credit card interest charges, late fees, and even a hit to one’s credit score.

As such, individuals may want to leverage credit cards for flexibility only if they are sure they’ll have the money available when their credit card payment becomes due. In other words, even if charging rent to your credit card offers more flexibility, it’s still necessary to budget for rent each month.

Earn Rewards

While there are many basic credit cards on the market, there are also cards that reward people for spending. Rewards can come in the form of cash back, points that can be redeemed toward travel and other perks, and airline miles. For those with reward credit cards, paying rent by credit card can represent a great opportunity to rack up spending and earn those perks.

However, it’s important to do the math. Third-party fees or credit card payment surcharges can cancel out any benefit a cardholder may earn, or even ultimately cost more if fees are greater than the reward offering.

Cover Immediate Expenses

If you’re short on cash, paying rent with a credit card can buy you some time. By putting what’s likely one of your largest expenditures on your credit card, you can free up funds for more immediate expenses. Then, you’ll have a bit of time to restock your bank account by the time your credit card bill comes due.

If you do this, however, you’ll want to make sure you’re ready to pay off your credit card balance in full by the end of the month, rather than just the credit card minimum payment. Otherwise, you’ll end up accruing interest on top of the money you’ll still owe for rent.

Also take notice if you regularly charge the rent out of necessity. If you do, this merits taking a closer look into the root causes. You’ll want to figure out how you might address those issues in your monthly budget instead of constantly relying on your credit card for backup.

Cons of Paying Rent With a Credit Card

Charging the rent can be a risky proposition, given what a credit card is. Here are additional reasons why paying rent with a credit card may not be a good idea.

There May Be Extra Fees

As discussed, some landlords and third-party payment companies may tack on a surcharge for credit card payments. Let’s say the surcharge is 3%, or an extra $30 on $1,000 in monthly rent. While that may not sound like much, it adds up to $360 a year — money some individuals may prefer to spend elsewhere.

Landlord surcharges aren’t the only cost that can make it more expensive to pay rent by credit card. Making a credit card payment even a day late can increase the total amount due, thanks to interest charges and late fees. And the later the debt — in this case, rent — is paid off in full, the more interest that will accrue.

Though interest rates vary by credit card, they are often higher than other lending products, like personal loans. The average credit card annual percentage rate is over 21%. Worse, the interest compounds, so each month that cardholders do not pay off the rent in full, they’ll incur interest on both the balance and the interest that has accrued.

It Can Affect Credit Score

If you put your rent on your credit card but then don’t handle your credit card debt responsibly, it could have negative implications for your credit. Behaviors like regularly missing credit card payments can lead you to have a bad credit score, which can have serious repercussions down the road.

Your credit score reflects your creditworthiness, or the risk you pose to lenders. The number (300 to 850 for the FICO® Score and VantageScore models) affects how likely it is for you to be approved for another credit card (or a mortgage or other loan) and the interest rate you’ll have to pay. You may also need to maintain a minimum credit score to rent an apartment.

Because rent tends to be a significant expenditure in most people’s budgets, you’ll want to ensure that you’ll have the funds on hand to pay the balance in full if you do choose to charge the rent.

It Can Increase Your Credit Utilization Rate

Even if you make your payments on time, paying rent with a credit card can still affect your credit score. That’s because scores are based in part on an individual’s credit utilization ratio, which is the proportion of credit being used relative to the total available amount.

When it comes to credit utilization, the lower the better. Individuals with high credit utilization are at risk of hitting their credit limit (which can also ding their credit score). With rent likely making up a large proportion of the average individual’s expenditures, such payments can significantly increase total credit utilization. The same principle applies to other major charges as well, such as if you were to buy a car with a credit card.

Should You Pay Your Rent With a Credit Card?

Whether to pay rent with your credit card ultimately depends on your financial situation. As discussed, there are some major downsides to paying rent with your credit card, such as paying extra fees and potentially harming your credit score. You could even get into a cycle of debt if you charge your rent and then aren’t able to pay off your credit card balance in full to avoid interest charges.

If you do decide to move forward with paying rent with a credit card, proceed with caution. Do the math to make sure the rewards you may earn will actually offset the cost of any fees you’ll incur. Also verify that you’ll have the funds available within your monthly budget to pay off your accumulated credit card balance, especially since a hefty charge like rent can drive up credit utilization.

Steps for Paying Rent With a Credit Card

How you’ll pay rent with a credit card depends on whether your landlord will directly accept credit card payments for rent or whether you’ll need to go through a third-party app.

•   If your landlord does accept credit card payments: In this case, you’ll either pay your landlord directly or through an online payment portal. You’ll need to provide your credit card information, including your account number, expiration date, and CVV number. Make sure to verify the total amount. Also check to see whether there are any fees involved and if so, how much those will run.

•   If you need to go through a third-party app: Renters who need to go through a third party in order to pay rent with a credit card will first need to set up an account with one of the apps that provides this service. Make sure to find out what fees are involved before proceeding. You’ll then complete your credit card transaction through the intermediary, which will then pass along the funds to your landlord, either with a check or directly to their bank account.

Alternatives to Paying Rent With a Credit Card

Paying rent with a credit card is more like a last resort than a go-to option. If you’re wondering how to pay rent when you’re in a bind, here are some alternatives to consider:

•   Borrow money from family or friends: If you’re really in a pinch, consider asking a trusted family member or friend if they can lend you the funds. This will save you interest, and it will also save your credit score from the impact of a hard credit inquiry. Just make sure to reach an agreement about how and when you’ll pay back the money — otherwise, it could negatively affect your relationship.

•   Talk to your landlord: If you’re really struggling to come up with rent for the month, consider reaching out to your landlord. Especially if you’ve been prompt with rent payments in the past, they may be sympathetic and offer a little breathing room. Just make sure to come up with a plan in the meantime, as a break on rent won’t last forever.

•   Reach out to rental assistance resources: Another option for those who are having a hard time making rent payments is seeking out assistance. There might be local nonprofits, charities, or even government groups in your area that can offer help to those in need. You may also look into resources like 211.org or the CFPB.

The Takeaway

Can you pay rent with a credit card? Sometimes. But is it a good idea to pay rent with a credit card? If all of the numbers make sense, it could be. You’ll want to weigh both the potential pros of charging your rent to a credit card, like possibly earning rewards or gaining flexibility, against the downsides, such as possible repercussions for your credit score.

If paying with plastic is tempting, your choice of card can make a big difference in the ultimate benefits you receive. The SoFi Credit Card, for instance, allows you to earn generous cash-back rewards and possibly lower your APR through on-time payments.

¹See Rewards Details at SoFi.com/card/rewards.


Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOCC0922017

Getting out of credit card debt may be easier by taking advantage of balance transfers. Moving your high-interest debt to another credit card with a lower interest rate can save you on interest and also allow you to streamline multiple debt payments into one.

Before you take the leap, it’s important to know how to do a balance transfer on a credit card. It’s also critical to know what to look for when choosing a balance transfer card to help ensure that making this financial move pays off.

How Do Credit Card Balance Transfers Work?

Completing a balance transfer is one way that you can effectively pay a credit card bill with another card. A credit card balance transfer allows you to take the balance from one or multiple credit cards and transfer it to a new credit card.

Ideally, you’re transferring the balance to a credit card with a lower interest rate. Some balance transfer credit cards even offer a 0% introductory annual percentage rate, or APR, for a predetermined amount of time, which can allow you to focus on paying down your balance without accruing interest.

Balance transfers can also allow you to simplify your payment schedule by rolling all of your credit card debts onto one new card that you’ll then work on paying off. That way, you’ll only have to worry about one monthly payment rather than multiple due dates and minimum required payments. However, you’ll likely incur a balance transfer fee in order to move over your balance to the new card.

Keep in mind that while credit card balance transfers are helpful when it comes to potentially saving on interest and simplifying payments, they aren’t an instant way to get out of debt. You need to commit to using a credit card responsibly by making on-time payments and avoiding getting into more debt. You’ll also want to ensure that you can pay off your balance before any promotional APR offer ends, at which point the interest rate will increase.

What to Consider When Choosing a Balance Transfer Credit Card

Before opening a new credit card and requesting a balance transfer, you’ll want to know a few things. Specifically, make sure you know how long the introductory APR offer will last, if there is one, as well as the types of debt you can transfer and the fees you may need to pay. That way, you can ensure you choose a credit card that meets your needs.

Length of the Introductory APR Offer

Many credit cards, in an effort to gain your business, will offer introductory APRs for as low as 0% — though you’ll most likely need good or excellent credit to qualify for these cards. When doing your research, make sure to look at how long the introductory period is, as they can last anywhere from six to 21 months.

Due to how credit cards work, once the introductory period ends, the credit card issuer will charge you their normal APR — and it could be higher than your old credit card. That’s why it’s critical to assess whether the introductory period will provide enough time for you to pay off your balance in full.

Recommended: What is a Charge Card

Types of Debt You Can Transfer

Different credit card issuers will have varying policies on what types of debt you can transfer. Aside from credit card debt, you may be able to transfer other types of debt, such as:

•   Personal loans

•   Auto loans

•   Medical debt

•   Retail or store cards

•   Student loans

Additionally, keep in mind that issuers may not allow balance transfers from certain cards.

If you know there’s a certain type of debt you’d like to transfer, make sure to check with a credit card issuer to find out what is or isn’t allowed before signing up for a new card.

Balance Transfer Fees

Although you may not have to pay interest if you have a 0% APR introductory period, you may still have to pay a balance transfer fee. This fee is usually either a percentage of your transfer amount — typically 3% to 5% — or a flat fee, depending on the card issuer. For example, if you want to transfer $6,000 and the credit card issuer charges a 3% balance transfer fee, you’ll need to pay $180.

It’s important to factor this fee into the equation to ensure making a balance transfer will actually save you money. You should be able to find out what the balance transfer fee is by looking at the cardholder agreement for the credit card.

Timeline for Balance Transfers

Some credit card issuers have deadlines as to when you can conduct a balance transfer after opening a card. For instance, you may only have a matter of weeks from when you open the card to transfer over your balance.

The exact timeline will vary from issuer to issuer, so make sure to take a look at your issuer’s credit card rules, and be prepared to act when you get your new card.

How to Transfer A Credit Card Balance to Another Card: Step by Step

If you decide you want to transfer existing debt to another credit card, you’ll first need to take stock of your current debts and their interest rates. Also determine how much of your debt you want to transfer. From there, here’s how to do a credit card balance transfer.

1. Apply for a Balance Transfer Card

Once you’ve picked the balance transfer credit card you want, it’s time to apply for it. To do so, you’ll need to submit the required information, which may include your name, address, Social Security number and income.

Additionally, you may be subject to a hard credit inquiry, which could temporarily affect your credit score. If you’re approved, you can take the next steps.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score

2. Transfer the Balance

Contact your new credit card issuer to ask what the exact steps are to conduct a balance transfer, and to find out whether it’s possible to transfer the amount you want to. When it comes to how to transfer a balance from one card to another, there may be several methods available to you, including:

•   Online transfer: You may be able to log into your online account and request a transfer by filling out a form. In some cases, you may be able to request a balance transfer online when you fill out your credit card application.

•   Phone transfer: You may be able to call the number on the back of your credit card and make a transfer over the phone. Make sure you have all the required details on hand before calling.

•   Balance transfer checks: Some credit card companies issue you checks to make the balance transfer. You’ll make the check payable to the credit card company from which you want to make the transfer. Just make sure to ask whether this will be considered a cash advance (that’s what you’d do if you were trying to transfer money from a credit card to a bank account, and it generally has a higher interest rate).

3. Wait for the Balance Transfer to Go Through

After you’ve made your request, you’ll need to wait for your new credit card to finish processing the balance transfer. In the meantime, keep your old credit card open and continue to make payments on any amount that’s due. That way, you’re not on the hook for a late payment, which could lead to late fees and have an effect on your credit.

Recommended: When Are Credit Card Payments Due

4. Pay Off Your Balance

Once the balance transfer is complete, you can start paying it down. Follow the terms stated on your cardholder agreement to ensure that you continue to qualify for the introductory APR — for instance, some issuers may revoke your rate if you make late payments.

Aim to pay off the entire balance before the introductory period is over and a higher interest rate kicks in.

Recommended: How to Avoid Interest On a Credit Card

Credit Card Balance Transfer vs Personal Loans: What’s the Difference?

Both credit card balance transfers and personal loans give you the opportunity to save on high-interest debt, but there are key differences between the two. For one, personal loans are a type of installment loan, where you borrow a lump sum of money and pay it back over time. Meanwhile, a credit card is a type of revolving credit that allows you to keep borrowing money up to your credit limit as long as you pay down your balance.

Personal loans tend to charge interest right when the loan is disbursed, whereas with a credit card, you may be able to take advantage of an introductory APR, if you qualify for one. However, balance transfers tend to have lower limits compared to personal loans. Plus, personal loans may offer lower interest rates compared to a credit card’s purchase APR, which is what will kick in after the promotional period ends.

Recommended: What is the Average Credit Card Limit

Doing a Credit Card Balance Transfer: What to Know

Getting a credit card balance transfer can help you manage your debt, but isn’t the answer for everyone. To decide whether it’s right for you, determine the amount of debt you want to transfer and see whether it’s likely the amount will be within the credit limit of your new credit card. If you have a high amount of debt, a personal loan may be a better choice.

In addition, a balance transfer only makes sense if you can qualify for a lower interest rate than you have with your current credit card. If your credit score isn’t that great, you may not qualify for an introductory APR offer. In this case, it may be better to seek alternatives, such as taking out a personal loan or sticking with your current credit card until you can raise your credit score and qualify for a better card.

Recommended: Can You Buy Crypto With a Credit Card

The Takeaway

Knowing the specifics of how to transfer a credit card balance can help you determine if doing so is financially smart. Take the time to calculate the fees you may be paying for a balance transfer, and compare that amount to how much you’d be saving on interest charges. If the fee you’d pay is much lower than the interest charges, transferring a balance from one card to another may be worth it.

Looking for a new credit card?

FAQ

Do balance transfers affect your credit score?

Balance transfers can affect your credit score since you’re applying for new credit, which may result in a hard credit inquiry. This can cause a temporary drop in your score.

How long does it take to transfer a balance from one credit card to another?

Typically, a balance transfer takes anywhere from five to seven days. However, it may take up to a few weeks to complete depending on your credit card issuer.

How do you qualify for a balance transfer?

You typically need a good or excellent credit score — meaning 670 or above — to get approved for a balance transfer credit card.

Photo credit: iStock/CentralITAlliance

¹See Rewards Details at SoFi.com/card/rewards.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


SOCC0722027

In a competitive market, buyers have been known to waive contingencies, increase earnest money, insert escalation clauses, and pen love letters. Yes, that’s right: personal letters to sellers in an attempt to stand out from the crowd.

The National Association of Realtors® (NAR) isn’t feeling the love for “love letters” because they often contain personal information about the buyer, like their race and culture, that could make sellers and their agents vulnerable to accusations of discrimination.

Oregon was poised to ban homebuyer offer letters until a federal judge permanently blocked the law in March 2022. That month a Rhode Island representative introduced a bill to outlaw the practice in her state, calling it “kind of a very quiet way of redlining, potentially,” before the bill was held for further study.

So the practice goes on, legally, as of now, despite the letters’ tepid sway. A Zillow survey of partner agents showed that love letters were the least successful strategy for winning the deal (all-cash offers made sellers’ hearts beat fastest).

If you’re inclined to write a homebuyer love letter, here are tips.

1. Make a Strong Opening

Remember handwriting? Do your best and write your letter on a nice piece of stationery. You’re trying to humanize yourself in the eyes of the seller, and a handwritten note can go a long way toward doing so.

Address the seller by name if possible, searching for it online, or asking your real estate agent. As you write the letter, convey a friendly tone and a sincere message.

2. Tell the Owner About Yourself

You might choose to tell the sellers something memorable about your family, that you plan to raise kids in the house, or that the yard is perfect for your dogs.

You could also talk about where you’re moving from and why. Maybe you’ve taken a new job, you’re looking for a sense of community, and you fell in love with this neighborhood.

If you mention your family, just realize that familial status is protected against discrimination under federal housing rules. (In this case, sellers or their agents are not to act with bias against, or in favor of, families with children. The point of the Fair Housing Act is to create a level playing field for all people renting or buying a home, getting a mortgage, or seeking housing assistance.)

3. Think Twice About Sending Photos

Photos are part of what makes NAR uneasy, because race, gender, gender identity, sexual orientation, disability, religion, and familial status are protected against housing discrimination under the Fair Housing Act.

Yet many real estate agents allow buyer clients to include photos with their offer letters.

The NAR director of legal affairs advises Realtors to “avoid helping buyer clients to draft or deliver love letters. … Counsel them to focus on the characteristics of the home or other objective information.”

Still, buyer love letters are actually encouraged by some agencies — along with photos and even videos.

4. Share What You Like Best About the Home

Why you want to buy the home is the central theme of your letter. So you may want to tell the sellers somewhere near the top what you like best about their house.

Mention details. For example, maybe you like the large front porch and can picture gathering there with friends and family on summer nights. Or maybe you’ve become enamored of the kitchen, where you’ll perfect your bread-making skills. If, by chance, the property has an ADU, you could describe your plans for it.

You could throw in a bit of flattery, letting the sellers know how much you appreciate how they’ve maintained the home.

5. Find a Connection

One way to develop a relationship with someone is to find common traits or interests. If you notice that you and the sellers share an interest, it can’t hurt to let them know.

Perhaps you’re a gardener, and it’s clear they’ve got the plant bug. Maybe you have a passion for pottery, and the seller has a small ceramics studio. Or maybe you noticed a jersey from your favorite basketball team.

As you hunt for a connection, be careful not to cross any personal boundaries that might make the seller uncomfortable.

6. Explain Your Offer

Once you’ve given a sense of yourself and why you want to live in this house, you can get down to explaining your offer. Be honest and respectful as you give context.

If you’re living in a time of bidding wars and your offer isn’t the highest, there’s no need to dance around it. You could explain that the house is your dream home, but it’s at the top of your price range and that you respectfully ask the seller to consider your offer.

If the sellers are selling and buying at the same time, you could mention your willingness to do a rent-back agreement that would allow them to lease their former house from you for a set period of time.

7. Let Them Know You Are Serious

Selling a home is a lot of work. The last thing sellers want on their hands is a buyer who slows down the process and might not even make it through closing.

Make sure your letter reiterates that you are pre-approved for a mortgage and are flexible about closing dates.

8. Mind the Length

If there’s a lot of interest in a property, sellers might receive many love letters. They may not have the time, or interest, to read long-winded missives, so keep yours short and sweet, perhaps one page.

9. Thank the Owners

The close of your letter should be as strong as the opening. This is your last chance to make an impression, weave in some personal notes, and make any final flattering remarks.

Thank the sellers for considering your offer, and let them know you are looking forward to hearing from them soon.

10. Avoid Negativity

Some things are better left unsaid, like changes you’d like to make. The sellers may have spent a long while making their home perfect in their eyes. So even if you want to open up the floor plan and pull up the carpet, it’s a good idea to keep those thoughts to yourself for now.

You don’t want to make market prices, or this particular one, sound unfair. And it’s smart to avoid pressuring the sellers in any way, as with talk about time constraints.

Finally, don’t contradict anything that might go into a purchase agreement.

The Takeaway

In a seller’s market, a so-called love letter gives buyers a chance to distinguish themselves. Though not all real estate agents are keen on clients sending personal letters, the practice continues.

Home shoppers in an active market will want to get pre-qualified and then pre-approved. Learn the SoFi Mortgage advantages: loans with competitive fixed rates and low down payment options.

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOHL20063

After four years of hard work in high school, the college acceptance letters begin to roll in. If a student is lucky enough to receive multiple acceptance offers from colleges, then they have some big decisions to make.

Chances are, they will make that decision by May 1 — also known as College Decision Day. For most colleges and universities across the United States, May 1 is the deadline for prospective students to confirm their admission plans. This is when many students submit a nonrefundable deposit to formalize their choice and new commitment.

Before the big decision day arrives, students and their families will generally want to prepare together. This is a major decision with key factors to consider. Keep reading for seven tips that could help students prepare for college decision day.

1. Get Organized and Know the Deadlines

The college application and acceptance process can be daunting. If a student has multiple offers to choose from, they may find they have tons of information to review and certain deadlines to meet.

Here are some deadlines you can ingest and paperwork you may organize as College Decision Day approaches:

Deadlines

•   Acceptance deadline (not all schools play by the May 1 rule)

•   Deadline for FAFSA®, the Free Application for Federal Student Aid — a key step in receiving financial aid (each college may have its own FAFSA deadline)

•   First-year housing deadline (this varies by school)

Paperwork

•   Acceptance letter

•   Financial aid offers

•   Copies of forms and documents you submit to a college

Keeping a separate folder, either physical or digital, for each school a student has been accepted to can be a helpful way to stay on top of any important paperwork. Marking key dates on the calendar as soon as the applicant comes across them can also aid in relieving unnecessary confusion when preparing for college.

2. Compare Financial Aid Offers

It’s no secret that college can be quite expensive. Before officially deciding which college to attend, it’s important to compare any financial aid offers.

Schools may have different policies and opportunities regarding financial assistance, which can include scholarships and grants. Comparing financial aid packages can help you see which school is most affordable for your budget. Money may not be the deciding factor for a student, but many may take the cost of attendance into consideration.

Once accepted to a college, the student can generally expect to receive a financial aid award letter that outlines what grants, scholarships, loans, and work-study options will be available to them. This can help families calculate the cost of attendance as well as help them understand what their financing options are.

This letter will only account for the first year of enrollment, so it can be worthwhile to request information from each school about how much tuition and fee prices have risen over the past few years.

3. Reserving Spots

To reserve a student’s spot at the college they’ve chosen to accept, they will generally need to pay an enrollment deposit fee. This fee is typically nonrefundable and guarantees the student has a spot at the school. The fee can vary in price from $100 to $1,000, depending on the school. Once school begins, this deposit is applied to the tuition bill or costs relating to housing, orientation, or school fees.

Students who are unable to afford the enrollment deposit may apply for a waiver. You can complete a form from the National Association for College Admission Counseling (NACAC) and submit it to the college where you plan to enroll. The college will decide whether to accept or decline the fee waiver form.

Students who are struggling to make a decision about which college to attend may be tempted to put down multiple deposits to buy themselves some extra time to make a decision. This practice is referred to as “double depositing” and is generally frowned upon as it can negatively impact other applicants, particularly those on a waitlist hoping to enroll.

4. Mull Over the Waitlist

Making a decision about which college to attend can be tricky, especially if the student has been accepted to multiple schools that they are interested in attending. This decision can be even more challenging to make if a student is waiting to hear back from a dream college or has been waitlisted at one of their top picks.

Depending on the applicant and the school, getting off the waitlist and into the school can be competitive. Even if a student makes it off the waitlist, that school may not be worth waiting for.

Students who are accepted after being waitlisted may find that they receive less financial assistance in the form of grants or financial aid by the time they are admitted, as being waitlisted can put them to the back of the line for financial assistance.

Being waitlisted by a school you wish to attend can be disheartening, especially if you remain on the waiting list when College Decision Day arrives. In that circumstance you might consider another institution that may welcome you with open arms.

5. When Decision Day Arrives

Ideally, making a final decision about which college to attend can happen before the national decision day. Waiting until the last minute offers very little wiggle room if something goes wrong with the acceptance process (say a computer glitch or busy phone lines).

That being said, if a student has not accepted their first choice college by May 1 or the specific acceptance dates of each college they received offers from, that should be their top priority. If they have already accepted a college offer, May 1 is a good day to double- and triple-check that they are officially enrolled. Better safe than sorry!

Next, rejecting the colleges the student won’t be accepting is another step to take. By not accepting the offer, the student will lose their spot, but the sooner they reject an offer, the sooner the college may be able to offer their spot to another student on the waitlist.

6. If a Student Misses the Deadline

Of course, missing the college decision deadline is not ideal and in many scenarios, missing this deadline can eliminate the student’s option of attending the school they are hoping to accept.

If a student misses the deadline, all hope is not lost. Some schools struggle to hit their enrollment targets by May 1. Plus, many schools lose students during the summer due to “summer melt.” Summer melt occurs when an accepted college student does not show up in the fall. Because of this, some schools may have a bit of secret wiggle room in their acceptance policy.

Students who missed the acceptance deadline may want to contact the college’s admissions office as soon as possible to explain their particular situation, especially if there are unique circumstances that led them to missing the deadline. Start by calling the admissions office and follow up on the conversation with an email so that there is an official correspondence that can be tracked. Make sure to be respectful during this process as this is a big favor to ask. Trying won’t cause any harm and this last ditch effort may just pay off.

While most schools have a May 1 acceptance deadline, some schools are on different schedules. This is why it’s important for students to double-check the deadlines for any schools they’ve been accepted to in case one varies. No one wants their dream school to slip through their fingers because they mixed up a deadline.

7. Financing a College Education

If paying for college is a concern, which it is for many families, there are options for easing the burden of paying for a pricey college education.

Once students have accepted a college offer and reviewed their financial aid package, they generally have a firm idea of how much they will need to borrow to fund their education. This is where student loans can come in handy. There are two types of student loans available: federal and private.

Federal Student Loans

The U.S. Department of Education provides federal student loans under its Direct Loan program. This means federal student loans have terms and conditions that are legally set by the federal government. Private lenders do not have to offer the same terms, such as fixed interest rates and income-driven replacement plans, that students can get from federal student loans.

Private Student Loans

Banks, credit unions, online lenders, and select state-based or state-affiliated organizations may offer private student loans. Private lenders set the terms and conditions of these loans, which are generally based on borrower criteria like credit history. Typically private loans are more expensive than federal loans.

The Takeaway

Higher education can prepare students for professional work, but deciding which college to attend is not always a simple or easy choice. Selecting the right school for you may involve several considerations, including the cost of tuition and other expenses associated with college life.

If you need help financing your college experience, SoFi offers private student loans with an entirely digital application process and no fees whatsoever. Potential borrowers can choose between a variable or fixed interest rate and have the option to add a cosigner to the loan.

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SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. SoFi Bank, N.A. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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