3 things I refuse to charge my credit card

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In some cases, it may be better to pay in cash.

Key Point

• I love using credit cards to earn cashback and points.
• Sometimes, swiping a credit card doesn’t make sense.
• In general, we do not recommend using credit cards to pay tax bills. It is also not recommended if other processing fees are high.

As a long-time credit card user, I have a pretty good track record of earning cash back and points to cover other bills and provide fun activities for my family. But while using a credit card often results in a payment, we also know that in some cases it’s better to pay with cash. Here are some reasons why I don’t use credit cards.

1. Taxes

Most people I know get their refunds during tax season. But if you’re self-employed like me, it’s very difficult to accurately estimate your tax liability. So in most years he has to pay the IRS money when filing taxes. Also, the IRS gives you the option to pay taxes with a credit card, but I don’t want to use it.

While it’s nice to have your tax bill returned in cash, the IRS charges a fee for using your credit card for that purpose. And in the past, I’ve found that the amount of cashback I can collect is less than the amount of commission I was charged.

2. Activities for children (if additional charges apply)

My kids participate in a variety of activities, from summer camps to sports. Some of these activities allow you to sign up using your credit card without incurring additional charges. However, some people charge processing fees that are higher than the amount of cashback I can collect. increase.

3. Purchases that cannot be paid in full

I happen to love credit cards. But I hate the idea of ​​having to pay interest on my purchases.If you want to take a vacation or upgrade your electronics, save up for those purchases in advance. after that Use your credit card to get reward points or cash back. Why? But first make sure the money is in the bank.

Precautions when using credit cards

Earning credit card rewards is great. However, before using your credit card, make sure there are no usage charges.

These days, many companies try to pass on credit card processing fees to consumers to combat inflation and recoup some of their costs. So, before you run out of credit cards to buy clothing or pay for meals, read the bylaws.

And of course, do your best to only use your credit card for purchases that you can pay immediately (that is, before the bill is due). Interest accrued on your credit card balance may offset the cash back you receive.