Having a credit card can be a great way to pay for certain things. Not only is it convenient, but it offers a method of really keeping track of purchases such as fuel or food. It’s also handy to have around for emergencies, but too many people use them for things that should never be put on consumer credit. Here is a list of eight important items that you should never use your credit cards for, and why.
1. Your Home Mortgage
While paying your mortgage on time is vital to your credit success, if you’re putting this payment on your credit card, then you are probably having some trouble in paying your normal bills on time. If this is the case, then it’s time to take a good look at your finances so that you can build a budget that will help put you back on track to financial success rather than financial ruin.
2. Doctor and Hospital Bills
If you can, and the issue is not life threatening, it may be a good idea to save up for surgical procedures rather than putting them on your credit card. You can also work with the doctor or hospital, who may have payment plans in place which will prevent you from having to pay large sums of money in interest fees and finance charges.
3. School Tuition
Going to school and getting your degree is a good goal no matter how old you are, but putting the cost on your credit card will only cost you more in the long run. Instead, consider getting student loans, which often charge a far lower interest rate and offer deferment for the time you are in school.
4. Counseling Services
With so many issues stemming from financial problems to start with, it’s never a good idea to put things like marriage counseling on your credit card. In the long run, this might actually lead to more trouble. Instead, contacting someone who can help you create a budget and stick to your financial goals might be more along the lines of what you’ll need.
5. Tax Payments
While you can use your credit card to pay the taxes that you might owe, you’ll always end up paying an extra fee for this ability. Since the fee is usually a percentage of the total bill, to pay down your credit cards might actually make it more difficult for you to pay off what you owe.
6. Lottery Tickets and Gambling Money
When you play the lottery, there is no guarantee that you will win. In fact, there is a distinct possibility that you might lose the money that you put into it. For that reason, it is always a bad idea to put your lottery purchases on your credit cards as you may easily end up in debt quickly, without actually realizing it. Because of such troubles, many states no longer even allow lottery tickets to be put on a credit card.
7. Money Orders or Cashier’s Checks
While you usually cannot purchase money orders or cashier’s checks with a credit card, you can get a cash advance on the balance you have. However, the fees and interest rates charged for these services are generally far more than what you would normally pay. It’s better to find other options when it comes to your money order needs so that you can save money in the long run and avoid trouble with your consumer credit.
8. Websites That Are Unsecure
It’s never, ever a good idea to use your credit card on a website that might be unsecure. Sure, using your credit card online might be the easy way to make a purchase, but if you risk using it on a website that looks unsecure, then you run the risk of your information being stolen and your card being used without your permission by a thief, which can only lead to more trouble in the long run. It’s far better to locate a secure and trusted website and pay a little more, rather than going out on a limb to trust a site your instinct tells you not to.
Kimberly Hill, the author of this article, maintains an entire blog where consumers can find lots of information about managing money and getting loans even when credit is an issue. Find out more by visiting her blog at http://www.badcreditpersonalloans.net