Things You Should Never Pay for with a Credit Card

Paying Your Mortgage

If you are not able to pay your mortgage with your available cash, you can potentially do more financial harm to yourself by putting a large amount on a credit card you likely cannot pay off. In some cases, mortgage companies won't even accept credit card payments for this reason. 

Paying Your Taxes

Credit cards are accepted at the tax offices, but you should avoid using them. If you owe back taxes, ask first about payment plan options. It is far wiser to make reasonable monthly payments than dealing with the accumulating interest from your credit card company when you can't pay the balance off.

Making Catalog Purchases

Believe it or not, some people still fill out the order forms that accompany catalogs in the mail to make purchases. It is not wise to write down your credit card information and leave it in the mailbox due to the high risk of fraud.

Paying Jail Bail

If you or a loved one finds yourself in trouble with the law, don't add credit card debt to the pile. Bail bonds are also categorized as a cash advance transaction so you'll end up paying the much higher interest rate and associated fees along with the bond amount.

Buying a Money Order

You may not even realize that purchasing a money order with a credit card is considered a cash advance and not a purchase. This means you'll repay based on a higher rate of interest and you'll likely have to pay a fee for the cash advance transaction.

Accessing Gambling Money

If you are able to use your credit card in a casino or for other gambling purposes, you could create a vicious cycle of debt. Credit card use for such purposes makes it all too easy to spend recklessly. Like with money order purchases, the credit card company will consider these transactions as cash advances.

Making a Tuition Payment

College tuition bills have a number of options for payment including student loans and work-study programs on campus. These alternatives should be explored before you put the payment on your credit card. A large tuition payment may cause you to go over your credit limit which incurs its own fee. Plus processing fees for the payment is often added on by the college collecting your money.