Building a good credit and improving credit card bonuses can be excellent for your finances, but putting certain items on your credit card drives to big fees and more above interest rates. Which cancels out any rewards. Avoid putting the coming 10 things on your credit cards. You’ll pay less credit card fees, save on interest, and make it simpler to build savings and reduce your debt.
1. Mortgage Payments
In case you’ve ever questioned, “Can I pay my mortgage with a credit card?” the reply is yes it is possible, however, that doesn’t make it a good suggestion, particularly if a money crunch leaves you tempted to pay your mortgage with a credit card that has an excessive restrict.
Most mortgage companies won’t allow you to make direct payments with your credit card. Though some third-party corporations will show you how to use your credit card to pay your mortgage, they typically cost charges for this comfort — which is able to simply add to the quantity you’re paying in payments every month.
It’s a particularly unhealthy concept to bypass your mortgage servicer by discovering a strategy to pay your mortgage with a credit card if you happen to don’t plan on paying off your credit card balance in full every month. You’re already being charged interest in your mortgage, and paying extra interest in your bank credit card balance is costly and avoidable.
Charging a big quantity to your credit card may also decrease the quantity of credit score out there to you, which may decrease your credit score rating. This might additionally occur if you happen to pay your property taxes with bank credit cards.