Things You Should Never Charge To Your Credit Card
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A little plastic can be a great way to extend your money when you need it, build your credit, and even allow you to splurge in the spur of the moment when you really deserve it. But it’s easy to rely too much on a credit card.
Say “charge it” when it comes to these items and you could be paying way more than what the items and experiences are worth for a lot longer than you’d like. Even if you have to put them off or change your mind completely and shut down your plans, paying with cash will save you quite the headache.
So if you’re looking to spend smarter or save better for what you really want, keep your credit card in your wallet in the following situations.
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Your Wedding
Money is one of the biggest causes of contention for married couples. Trust me when I say you don’t want to spend the first few years struggling to pay off your big day.
A better idea? Start a wedding fund, then schedule the wedding date for when the fund is big enough to cover most of your expenses.
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Your Honeymoon
The honeymoon is really over when two weeks in Europe turn into two years of payments.
Don’t want to break the bank but still want the honeymoon of your dreams? Save for the honeymoon after the wedding. You don’t have to go on one immediately. You may be able to apply some of your wedding gifts (a.k.a., money) to increase your honeymoon budget!
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Small Shops Online
Got an Instagram mention advertising something cute from somebody’s online business? Be careful before you buy. Unsecured websites — those that don’t start with “https:” — may be fishing for your credit card details. Give them your credit card information and someone could steal your identity before your new outfit arrives at your door.
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Anything That Doesn’t Pay You Back
You pay a lot in interest to your credit card companies. Not getting anything back from them for your money is a mistake.
There are tons of rewards cards out there that pay you back for your purchases with everything from free gas to frequent-flier miles to actual cash. It’s a great way to save (and not feel quite so salty when the interest payments on those monthly bills come in).
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Your Bar Tab
Spending and drinking just don’t mix. If you don’t want to wake up wondering what happened to your credit card account, leave your card at home. Instead, budget out the amount of cash you want to spend and head home when it’s gone.
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Your Mortgage Payment
You’re already being charged interest on your mortgage payment. Put one on your credit card and you’re doubling your interest payments (one for the card and one for the mortgage) plus fees. The next month you’ll be even further behind when you have to pay for your actual mortgage and the mortgage payment you borrowed.
If you want to avoid the credit ding of a late payment, it’s better to put other payments on your card and pay your mortgage with cash.
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Medical Bills
Emergency medical treatment is expensive, but in those times you can contact the hospital to make a payment arrangement at a cheaper interest rate than your credit card company will offer.
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Your Tuition
They’ll charge you up to three percent for the “convenience” of paying your tuition with a card. A better option? Talk to your bursar’s office. You may be eligible for a low-interest student loan, grant, scholarship or even work-study program.
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Bail
Credit card companies charge a much higher percentage on money borrowed for bail. Unless the circumstances are extreme, if you don’t have the cash on hand it might be better to say “I don’t have it.”
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Your Car
Even if your balance can handle it, you’re better off borrowing through the car company. Choose a dealership that offers you a great interest rate and you’ll save hundreds of dollars.
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A Big Vacation
Going on a big vacation to relax and then coming back to stressful credit card debt is defeating the purpose. If you really want to enjoy yourself, save up to cover your vacation plans. You’ll have a feeling of accomplishment and keep that relaxed feeling around a lot longer.
