Knowing What and What Not To Charge On Your Credit Card Is Very Important

Pennygem

If you’ve got your budget on your mind, financial experts say these are some charges that shouldn’t be put on plastic. PennyGem’s Justin Kircher explains.

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00:00 If you've got your budget on your mind, financial experts say these are some

00:06 charges that shouldn't be on plastic. You should think twice about putting your

00:10 rent or mortgage on a credit card. Aaron Lowry, founder of Broke Millennial, tells

00:14 CNBC there's usually a 2 to 3 percent processing fee, so even if you're

00:18 charging those payments just to get rewards, the fees could negate them.

00:22 Money Talks News says the same for buying a new ride, explaining that a

00:26 cheaper way to make car payments will likely mean getting an auto loan through

00:29 a bank or credit union. CNBC advises against using plastic for any large

00:34 purchases you can't pay off right away, explaining that aside from the toll from

00:38 interest, your credit rating will take a hit if you use up all or most of your

00:43 credit limit. As a way to guard your purse strings, avoid any impulse

00:46 purchases. Whether it's retail therapy or a night out on the town, these are some

00:51 scenarios that can really rack up debt in a hurry.

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