Many people struggle to manage their credit card debt. After all, you don’t usually see the effects of a purchase until you’ve gotten your statement in the mail, plus monthly fees and interest charges. Unless you can afford to pay your card’s balance in full each month, know what charges you should avoid putting on your credit card to keep your credit score in good standing. 

5 Items You Shouldn’t Charge on Your Credit Card

1. Automobile

Whether you’re financing or leasing a car, putting your monthly payment on a credit card is risky since it puts a higher balance on your available credit. Credit utilization accounts for 30 percent of your credit score, so large payments may lower your score. You may even be charged with merchant or convenience fees by the car company. Pay the company with a debit card or personal check instead. 

2. College Tuition

When it comes to financing your education, stick to student loans, which usually have lower interest payments. Student loan companies are much more forgiving than credit card companies and have payment plans available to you that others won’t offer. 

3. Mortgage

Most mortgage companies don’t allow credit card payments, but even if they did, you should avoid using your card for this purpose. Remember that like any other large purchases made on your card, your mortgage payment will increase your credit utilization. Moreover, if you can’t pay the full balance of the mortgage on time, any unpaid balance left on the card will be hit with higher interest rates.

4. Taxes

You can pay your taxes with a credit card, but you’ll likely end up paying more in the end. You’ll be charged a processing fee and will likely incur interest charges. Depending on what’s owed, you might exceed your credit limit. 

5. Big-Ticket Items

While it’s tempting to put a large purchase on a card, it’s a financial risk that could end up being more expensive than the original price of the item. Depending on your interest rate, whether you pay on time, or how much of the balance you pay, you’re probably paying much more than the item’s original price tag. 

Founded in 1932 to help the families of federal employees and military personnel, Spirit of America Federal Credit Union in Lincoln, NE, is a nonprofit that’s helped many families protect and plan their financial futures with outstanding financial services. They provide an all-in-one service, so you can set up checking and savings accounts and take advantage of online banking and ATM access. They also provide affordable loans for home, auto, and educational purposes. Call them today at (402) 467-1102 or visit their website for additional information.