Consumers can use credit cards to pay for nearly everything, everywhere these days. although just because you can doesn’t mean you necessarily should, says credit reporting agency Experian.
Outstanding credit card debt recently hit its highest point ever, surpassing $1 trillion in 2017, according to the Federal Reserve. and also also also 86 percent of Americans who have or had credit card debt said they regret that will, according to a recent report by NerdWallet.
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Here are six expenses Experian advises you to not put on plastic.
1. Taxes. If you get slammed with an unexpected tax bill This particular April, that will could be tempting to pay Uncle Sam via Visa or Mastercard. Not so fast: The Internal Revenue Service will charge a merchant processing fee of anywhere of up to 2 percent and also also also, if you use third-party filing software, you’ll pay even more. and also also also why pay interest charges of taxes owed? Instead, consider a short-term personal loan or ask the IRS for a payment plan; the government interest rate is usually usually only around 0.5 percent, according to Experian.
2. College tuition. This particular is usually one for the books: Don’t ever pay for education with credit, as the interest on student loans is usually nearly always lower. In addition, large charges such as tuition fees will up your credit utilization ratio, which can result in a ding to your credit score. What’s more, colleges and also also also universities often add a processing fee of up to 3 percent for card payments.
3. Mortgage payments. Most home-loan lenders won’t let you pay your mortgage by credit card although there are plenty of third parties who will gladly help with that will — for a huge fee, of course, says Experian. and also also also if you don’t pay off your credit card balance at the end of the month, you’ll compound your mortage debt and also also also eat up a lot of your available credit — again impacting credit scores.