Avoid These 5 Types of Credit Card Shopping
Credit card appears to be an easy solution to your immediate money needs, especially in the age of financial distress. It’s true that credit card is a useful addition to your wallet. But you should never depend on it to pay off expenses. If you’re having a hard with your finances and unsure about the future then never ever use your credit card. You might find yourself in some serious debt. Make your payments with cash whenever possible.
Besides ensuring that your credit card usage is sound and smart, you should also refrain from credit card shopping when it comes to buying things mentioned below:
1. Purchasing a Vehicle
You would never want to purchase a vehicle on a credit card. If you do, you will have to pay an interest rate on your purchase right away. Moreover, the rate is mostly higher than a loan. If you want to purchase a vehicle, try to secure financing first. If you do want to use your credit card, just stick to paying down payment only, nothing more.
In case you use credit card to pay taxes, you will need to pay a convenience fee of 2 to 3 percent of what you owe. This is on top of the high interest rates of the cards themselves. Charging your taxes with convenience fee might hurt your credit score and make you look like a risk to banks and other financial institutions.
3. Household Bills and Groceries:
If you regularly use your credit card to buy groceries or to pay off your electricity and water bill, you are actually splashing more money each month for your basic necessities. If you possess a credit card, it is best not to use it until you really need it.
4. Unsecured online purchases:
You do shopping with credit card? Does the Web address have an “https” or a closed lock icon at the beginning? If not, that’s your cue to take your shopping cart somewhere else.
5. Medical bills:
If you use a medical credit card available via your health care provider’s office to pay bills, be careful to read the fine print about your obligations. Else you might end up paying unnecessary charges.
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