You have several credit cards and a couple of killer rewards programs. Why not put them to good use and charge every purchase that you can?
It’s smart to get the most out of your credit cards, but do so within a budget and with one thought in mind – “Is a credit card the best way to pay for this item?” Consider these seven items that are unwise to pay with your credit card.
1. College Tuition – If you put your college tuition on credit, you’ll get an extra lesson on interest rates – and a painful one at that. Undergraduate federal student loans taken out during the 2018-2019 academic year carry 5.05% interest. The highest rates of any student loans are 7.6% for PLUS loans that target parents and graduate students. Meanwhile, the average credit card annual percentage rate (APR) is almost 17%.
Still think you should charge your tuition? Take a math course or two and rethink your strategy.
2. Taxes – It’s okay to…