Here are six expenses you do not put on plastic

1. Taxes. If you get slammed with an unexpected tax bill This particular April, This particular 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 in addition to, if you use third-party filing software, you’ll pay even more. in addition to 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 actually usually only around 0.5 percent, according to Experian.

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2. College tuition. This particular is actually one for the books: Don’t ever pay for education with credit, as the interest on student loans is actually 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 in addition to 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 however there are plenty of third parties who will gladly help with which — for a huge fee, of course, says Experian. in addition to if you don’t pay off your credit card balance at the end of the month, you’ll compound your mortage debt in addition to eat up a lot of your available credit — again impacting credit scores.

4. Big-ticket items you can’t truly afford. Here’s rule No. 1 for credit card buys: If you can’t pay This particular off in full by the end of the month, don’t put This particular on plastic. Only open a fresh account offering a 0 percent introductory rate for a set period to pay for such a purchase after you figure out how many months This particular will take you to pay if off at zero interest in addition to set up those automatic payments. in addition to remember, the hard inquiry to open the fresh account will impact your credit score.

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