Maria Adams, Credit Cards Moderator
@m_adams
You shouldn’t buy with a credit card anything that you cannot afford to pay off. Otherwise, you will end up in debt, incurring interest charges, and damaging your credit standing. You should also avoid making purchases that incur fees. For example, you shouldn’t use a card that charges foreign transaction fees for international transactions.
The 3 Worst Things to Buy with a Credit Card
- Big-ticket purchases you cannot afford.
You should always try to pay off your credit card each month to save money on interest. So, it’s best to avoid spending more than you can repay to avoid the negative effects of prolonged credit card debt. - Purchases that incur foreign transaction fees.
Avoid using your card abroad or to buying things from internationally based merchants, unless you have a no foreign transaction fee credit card. A foreign transaction fee is a 2-3% surcharge that the vast majority of credit cards tack onto transactions processed outside of the United States. - Purchases that exceed your credit limit.
If you decide to opt-in for the ability to exceed your credit limit, you must only allow your spending to surpass it in the case of a true emergency because it will hurt your credit standing.
If used responsibly, a credit card can be a powerful tool that saves you money in rewards and interest down the road. On the downside, a tendency to overspend could lead you to expensive debt if you don’t pay in full, as well as credit score damage if you miss payments.
Ultimately, to learn more about what you shouldn't do with a credit card, you can check out our editors' guide on "Credit card mistakes to avoid."
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