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By Moneytips.com, special to cleveland.com | Posted on October 28, 2018 at 07:35
Bad choice for plastic
Associated press
Bad choice for plastic
You have several credit cards and some killer reward programs. Why not use them wisely and charge every purchase you can?
It makes sense to get the most out of your credit cards, but as part of a budget and with only one idea in mind: "Is a credit card the best way to pay for this item?" Consider these seven items that it is unwise to pay with your credit card.
1. College courses
Associated press
1. College courses
If you put your tuition on credit, you will get an extra lesson on interest rates – and a painful lesson. Federal undergraduate student loans contracted during the 2018-2019 academic year bear interest of 5.05%. The highest rates of all student loans are 7.6% for PLUS loans for parents and graduate students. Meanwhile, the average annual percentage rate of credit cards (TAP) is nearly 17%.
Still thinking that you should charge tuition? Take one or two math lessons and rethink your strategy.
2. taxes
Associated press
2. taxes
It's good to pay your credit card taxes, and the IRS website offers links and instructions to show you how. However, you will pay for the privilege. Fees range from 1.87% to 1.99% of taxes due – painful if you owe a lot – with a minimum fee ranging from $ 2.50 to $ 2.69.
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