5 Things you Should Never Use Your Credit Card For

Credit cards can be a great tool for purchases. They are a way to build credit, earn rewards for your purchases, and help you out in a financial emergency. But, if you aren’t careful with your use, credit card debt can build quickly, not to mention what you will pay in interest. When it comes to spending, here are five things you should never use your credit card for.

To make you feel better. A new purchase may give you some temporary happiness, but in the long run, the stress of being crushed by a mountain of debt will negate any of that joy from your purchase. Have a separate checking account you transfer money into on a regular basis that you can use for your fun money.

On hospital bills. Credit cards are best for purchases you can pay off quickly. Often, you can negotiate a payment plan to make small monthly payments with lower interest rates than most credit cards offer.

For cash advances. If you are in a pinch, taking a cash advance may seem like a good idea. But do your research first. Cash advances typically come with much higher interest rates than purchases, and some cards may even charge a fee for it. Check out Sandia Area’s Rewards Mastercard for a no fee option if you do need a cash advance.

Paying for college. Student loans have low, fixed interest rates. And, if they are federal student loans, you will have much more flexible repayment options than what a credit card will offer you.

To help start a small business. Look instead into a small business loan through your credit union. These will come with much lower interest rates, and can allow you to avoid using your personal credit for business purchases.