If you pay off your credit cards every month, it makes sense to put big purchases on plastic, because credit card companies will step in if you have a dispute with the merchant. According to Yahoo Finance, here are three expenses you should never put on plastic:
- Your tax bill. If you don’t have the cash to pay your taxes, you’re better off setting up a payment plan with the IRS, because their interest rate is less than 5% – about one-quarter the interest rate of most credit cards.
- Paying with plastic isn’t a good option for plastic surgery, either. Reality shows can make nips and tucks seem routine, but Botox injections can cost $300 a pop – and that adds up. Those medical credit cards – like “Care Credit” that offer a zero-percent introductory rate – can lead to big problems. That's because the first time you’re late with a payment, they’ll go back and charge interest on everything you charged since the day you got the card.
- One final expense you should never put on a credit card: a wedding. Financial counselor Clarky Davis says with plastic it’s easy to spend more than you wanted, but coming home from your honeymoon to a huge credit card bill can cause tension. The fix? Instead of focusing on the material aspects of your big day, focus on the meaningful things. For instance, people who love you couldn’t care less if there’s an open bar or if you’re wearing a $5,000 wedding dress. They just want to be there to celebrate your happiness, and you don’t have to go into hock to make that happen.