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Things you shouldn't put on a credit card

Hilander

Free Spirit
Staff member
V.I.P.
(Credit.com) Credit cards are powerful financial instruments, but cardholders must use them carefully to avoid becoming trapped in a cycle of debt. At the same time, it can be difficult for cardholders to contemplate a huge expense knowing that a bank has already extended them sufficient credit to just charge it.

5 things never to put on a credit card - CBS News
All of the things they mentioned, student loan, taxes, a wedding, vacation or medical bill shouldn't be put on a card. There is better financing for a student loan, taxes or a medical bill than a charge card. As far as a vacation or wedding if you have to charge it, especially the whole thing, then you can't afford it.

I have never put any of these things on a charge card and I can think of a few more things I wouldn't want to either. I have used a card on vacation but only because it was required by the hotel and you just can't carry that much case but I had the money to pay it back. I can't say I have never used a card for something that I shouldn't have, like furniture, but it wasn't thousands of dollars worth.

Have you ever used a card for something you shouldn't have? What do you think about using a card for the 5 things they say you shouldn't?
 

dDave

Well-Known Member
V.I.P.
I have put school on a card every single semester, I'm not borrowing money though, I always have sufficient funds in my account. I guess that makes it not the same thing at all.

I know that credit cards are popular but a lot of people really hate them because of the irresponsible behavior they are known for encouraging. The fact is that there's nothing wrong with a credit card if you use it responsibly though (even if you're going for one of the 5 things listed above). People that can't handle being responsible should force themselves to do so by getting a debit card and get overdraft protection on their account.
 

danwiz

Registered Member
The ONLY thing I put on my CC is internet purchases, and then when the bill comes due I ALWAYS pay it immediately. I never pay any interest on CC debt by paying the bill immediately on the day I receive it.

An acquaintance of mine got in WAY over his head and it took him years to get out of debt, all the time paying 18% (or whatever) per year. How can people be so frigging irresponsible?!

A different friend was so happy to get an American Express card - he felt that he had finally become a god or something. Went out and purchased a bunch of expensive stuff with it, planning to pay for it all over the course of the next year or so. He was shocked when I informed him that Amex expects FULL PAYMENT on the due date unless you tell them in advance that you want to pay off certain charges over time. He was shocked and panicked. He called Amex the next day and worked out a payment plan so that they would not take away his card.
 

Taliesin

Registered Member
We don't even have a credit card. When I first got married, my wife had thousands of dollars of debt on her personal credit card that we had to pay off before we could achieve some semblance of financial stability. Once that was paid off, we stopped using the card. Now, if we can't afford it, we don't buy it.
 

idisrsly

I'm serious
V.I.P.
I learned a dear lesson with credit cards when I was in my early twenties. I had three credit cards maxed out from basically living off them. Very irresponsible. I had to work really hard at paying them all off and closed them all. I only got another credit card again about 4 years ago and have the minimum credit limit on it. I use it as my savings account and always have a positive balance on it. I find it handy to have, as a lot of things require a credit card for payment.

As for the list of 5 things not to use "credit" for, I couldn't agree more. Credit is a terrible thing, and those 5 things are probably the worst things to have credit for on a credit card specifically, which has the highest interest rate of any loan/credit scheme. After learning the hard way myself, I completely agree that if you have to use credit to pay for something, you can't afford it.
 

Van

Heavy Weapons Guy
V.I.P.
My general rule is never put anything on my card that I won't be able to pay off at the end of the month. Had a credit card with a substantial limit for some time now but have never paid interest on it. I only use it for the cash back feature. Otherwise I use it just like I did my debit card. I usually pay it off one every other week or so.

I would certainly agree however that those things should never go on a credit card.
 

Doc

Trust me, I'm The Doctor.
V.I.P.
I had a unnamed person I know put a $8,000 vehicle on a credit card with 22% interest. Their only other option was to get the car from a company that offered the vehicle on a monthly payment plan with a fun little GPS feature that turned the vehicle off if you missed a weekly payment by a few hours. Their interest was also 69% but they chose not to advertise that fact. They would advertise as an "Any credit accepted!" place. A $6000 car ended up costing $11,500 when payments were finished. In this case they saved a couple of thousand by putting the vehicle on the CC instead of financing through the company.

What they failed to realize was that their credit was shit already because of high limit credit cards with low interest payments that were already maxed out. They had so much credit left on this (their third card) because of the 22% interest. They got the car for a lot less but ended up having to file bankruptcy because they couldn't even make the minimum payments on three maxed out cards due to their failure to realize that CC companies charge fees for going over a limit and not paying on time while still compiling interest.
 
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