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5 Things You Should Avoid Paying With A Credit Card
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5 Things You Should Avoid Paying With A Credit Card

by programmerJuly 24, 2015

Some things just aren’t meant to be paid for with your credit card. This paperless method of payment isn’t for everyone and everything, and the inability to visualise the amount of money being spent can be detrimental to your financial health. Keep the following items off your credit card tab:

1. Education Funding

Tertiary education is increasingly viewed as a necessary stepping stone for career advancement. It’s also getting more expensive. That said, loans typically have lower interest rates than credit cards, so charging your tuition fees to your credit card is inadvisable.

Image via Nerd Wallet

 

You shouldn’t repay your existing student loans via credit card for the same reason. Why would you pay more than the 1% interest rate charged on your PTPTN, for example?

2. Retail Therapy

Maybe that bag you purchased made you feel really good after a stressful week at work. Charging it to your credit card, though, won’t be good for your finances. The effect of your impulse purchases won’t be felt until the end of the month, and by then, it’s too late to regret your empty bank or high interest payments.

3. Wedding Expenditures

Weddings are expensive, and funding them entirely in cash is but a dream for many. You’ll likely incur some form of debt in the process. Racking most them up on your credit card, though, is not a smart move.

wedding credit card debt
Again, everything goes back to the higher interest rates charged on your credit card balance. Take out a personal loan if you really need some extra funding. And fret not: even if wedding debt is inevitable, there are ways to minimise it!

4. Vacations

Vacations are Big Expenses, two words that should not be associated with your credit card unless you can pay it all off right away. They key here is your ability to pay off your vacation pronto. Some parts of your vacation can actually benefit from credit card purchases.

You stand to earn travel miles, rewards points, cashback, and additional protection. However, using your credit card overseas may incur extra fees, so make sure you talk to your bank and know what you’re getting into before you traipse around outside Malaysia!

5. Unsecured Online Purchases

The extra ‘s’ in ‘https’ web addresses means that the website is secure. Facebook has it, bank websites have it, and your favourite online shopping portals should have it, too, if it requires you to divulge your credit card details online.

Unsecured connection
You never know when you might get duped, after all, and it’s much harder to go after a dealer that’s based far away for failed purchases – or even worse, you might end up a phishing victim instead of a happy purchaser.

Conclusion

Credit cards are very convenient pieces of plastic to carry around, but they’re not meant to be used as your sole method of payment, especially if you don’t have the financial chops to control your spending. As a rule, don’t charge any unnecessary expenses to your credit card, and you should be better off for it.

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programmer

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