While credit cards offer convenience and rewards, using them for certain expenses can lead to high fees, spiraling interest, and damage to your credit score. Financial experts generally advise against charging any purchase that you cannot pay off within a single billing cycle. 1. High-Fee Recurring Payments
: Paying federal or state income taxes with a card results in a processing fee between 1.87% and 2.25%. The IRS offers installment plans with interest rates significantly lower than standard credit card APRs. what not to buy with a credit card
Many essential monthly bills carry convenience fees when paid via credit card that often outweigh any potential rewards points. While credit cards offer convenience and rewards, using
