According to the experts, there are quite a few things that you should not charge on your credit card unless you will have the cash at the end of the month to pay the balance in full. However, if you are like most of us, you probably do not have enough money in your bank account these days to making certain purchases using plastic. Those who have the cash in the bank can certainly take advantage of some rewards savings by using their card to make the purchase, but for most of us certain types of purchases are not worth putting on your credit card.
One of the last things that you ever want to charge is going to be the IRS. If you have a very large tax bill that you need to pay the experts say that you should not put this on your card. Those who charge a large tax bill to their credit card will more than likely end up with a large bill to pay. Essentially, this is just the same as borrowing from Peter to pay Paul. However, you will have to also more than likely pay some additional fees that could end up tacking on 2% or more to your bill. The best thing to do in this case is to set up a payment plan with the IRS. That is correct. You can set up monthly payments. All you need to do is pick up the phone and make the arrangements or even head down to your local IRS office and explain to them your situation. 99% of the time, they will work with you to settle your debt on a payment plan.
Another thing that you should never purchase with is going to be clothing. Clothing is an item that you should save up for in order to purchase. Clothes will immediately loose their value the second that you walk away from the store and wear them. If in a month or so you find your self without income to pay your credit card bill you will not be able to liquidate clothing items at full price. You will more than likely not be able to pay your balance in that situation because it will be very difficult or next to impossible to get back the full value on your clothes once you have removed the tags and worn them. You are much better off putting these types of items on lay away instead of giving in too a whim.
Restaurants and bars should be paid cash unless you plan to pay your credit card bill in full at the end of the month. It is not very wise to use your credit card to take out that special date for the first time to a fancy restaurant and then clubbing if you can not afford it. Food and drinks are immediately consumed and there is no chance that you will ever get your money back if you go blow a big chunk at a restaurant or bar for a night out that you can not afford. Again, it is much better to pay the date with cash. If the only way you can afford to take out this person to a five star restaurant is by using your credit card than settle for something more affordable. After all, on a date, it is the company that matters and not the place.
The experts also agree that you should never charge your college tuition using your credit card either. Most colleges have very high tuition rates that can get a person in trouble if they really can not afford it. Unless you are able to pay it off within the next few months or so than it is definitely not worth charging your college tuition to your card. Look for alternative ways to pay your schooling such as scholarships or even college grants. You may also look for a low interest rate student loan or even ask for donations from relatives. Be creative in ways to find financing for your tuition, however, you are better off if you do not use credit unless you know you can pay it quickly.
Its also a bad idea to use your credit card for something like plastic surgery. Botox injections, breast implants, laser liposuction surgery as well as host of other cosmetic procedures are probably not worth your while to charge using your plastic card. These types of medical procedures can be very costly and are not life or death threatening matters. Again, if you loose your job 3 months from now or some other emergency creeps up a $ 5000 plastic surgery makeover will become hard to pay. Again these types of purchases are better of made using cash unless you plan to pay your credit card balance in full at the end of the month. Otherwise, you will be stuck with impossible to recoup expenditures. Use you common sense before you go swipe a credit card at some makeover clinic.
Again, the list of things that you should not charge can go on for very long. All you need to do is apply some common sense before you swipe. Items that you can not immediately liquidate for 90% of its value back will not be worth your risking the purchase on a charge card. Unless you have plenty of cash to pay your balance off at the end of the month it always best to pay using cash, check or debit card. Use your credit card sparingly for emergencies only and you will have good credit the rest of your life.