NEVER Use Your Credit Card to Make These 9 Purchases

Woman using a credit card

A credit card can make your life much easier, but it can also create important economic tension for you when you use it to buy the wrong things. Please keep reading to find a detailed list of things you should not pay with a credit card and why it is a terrible idea.

Pay your mortgage using a credit card

If you have a low mortgage payment per month, it may sound like a good idea to make your mortgage payment with a credit card, but there is a problem with this way of thinking. For one, many mortgage companies won’t let you pay your mortgage with your credit card.

Some companies allow you to pay your mortgage using your credit card, but these will be added to the amount paid via invoice each month. Even if you manage to conceal the payment from your mortgage administrator, you can have difficulty planning how to pay the balance every month. Overall, this is still a bad idea.

Medical bills

When you don’t have enough cash to pay for a medical bill, one of the worst things you can do is use your credit card for the payments. Medical bills are expensive, and it is a bad idea to pay with a credit card that will apply a high interest at the end of each month.

Try to use debit cards or loans to pay for medical bills. Avoid increasing your monthly debts with these expensive bills.

University tuition

Just like medical expenses, the cost of the college enrollment fee is expensive. Suppose you are a college student with a challenging financial situation. In that case, it may sound like a good idea to use credit cards to pay that registration fee.

If you care about your credit score, do not do this. Not only will you put an undesirable strain on your credit cards, but many schools also charge up to 2-3 percent for “privileges.” This can increase the cost even more!

Overall, it is not worth it. If you have trouble paying your registration fee, consult the admission office at your school. They will inform you about how to apply for a student loan, a subsidy, a scholarship, or a type of program that can be used to help you ease your education costs.


It is possible to pay your debts with a credit card. It is fully legal. In fact, when preparing your tax forms, you can pay up to 3% with credit cards. But the thing is that when you use credit to pay for income tax, the IRS will immediately charge you more because you are paying with “borrowed money” from the banks.

Since tax is a significant responsibility to any American, it can get tricky to use this method to pay your yearly income tax to the IRS. Nevertheless, if you feel like you don’t have any other choice, it is best to contact an IRS payment before doing this.

credit card
Photo by Mark Nazh from Shutterstock

Don’t purchase vehicles using a credit card!

Don’t ever think about paying your monthly car payments with your credit card. Since the retail price of a car is very high, many automotive distributors do not take a credit card. However, if you, by chance, find a dealer that accepts credit cards, think you do not want to take a card, you will end up paying over 1 to 2 percent on transactions.

Also, after making payments of more than $10,000, you could maximize your credit line. If you need cash for the payment, it is better to get a loan from a bank or credit union. This alternative method will reduce interest by about 15% since you will only pay about 3 to 4% in interest.


Many people are dangerously buying virtual coins such as Bitcoin but using their credit cards. Regardless of how you choose to purchase virtual currencies, there is a significant risk associated with these operations.

Even though these coins have been around for some time, there are doubts regarding their prices and stability. As a rule of thumb, don’t work with cryptocurrencies vendors that accept credit cards. That is shady and unreliable. Most times, they will ask you for very private tax and banking information that could end up in fraud.

Household bills

Don’t use your credit card to pay for monthly house bills like your mobile phone or cable. Since these fees are usually the same every month, you need to pay them with debit cards. This way, you will avoid paying interests fees. In the long run, this reduces your monthly expenses.

RELATED: 10 Easy Ways to Reduce Your Monthly Bills

Any type of down payment

Don’t rely on a credit card to pay a down payment on anything, including houses or cars. This can be a controversial issue because you generally can’t use a credit card to pay your down payment on your home unless you have a lot of cash upfront.

Nevertheless, this is not a good idea. Suppose the only reason you want to pay the down payment with a credit card is that you can take advantage of the high credit limit on your credit card. In that case, you really should not pay the down payment.

If you add a lot of costs and pay high interest rates on credit cards, the final sale price of your desired product can increase substantially.

Your business start-up costs

Using your personal credit card to pay for business costs or fund start-up costs can be a bad idea. It usually takes at least a few years for a business to become profitable. At the same time, you may have to pay extremely high interest on unpaid debts. It might be better to get a small business loan.

Credit card interest rates are usually higher than traditional loans. A better idea is to see if you can raise funds through crowdfunding sites or friends and family. This type of entrepreneur idea is risky, so using a credit card to pay is like committing financial suicide. As a responsible person, you should avoid it at all costs.

You might also like: 15 Surprising Credit Cards Facts That Will Shock You

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1 thought on “NEVER Use Your Credit Card to Make These 9 Purchases”

  1. I’m trying to find a way to reach out to the Frugal American. So many questions people asked on the www but not one has been answered. We are looking for ( not eBay or Amazon ) a real antique dealer where we can correspond with. Than you

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