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Jack Brooks
Jack Brooks

Buy A Credit Card

"The big fork in the road is whether or not you carry a balance," said Ted Rossman, senior analyst at and "I think you should use your credit card for everything because rewards are great. They can really add up over time. You get better buyer protections, better fraud protections.

buy a credit card


Anh Tran, a certified financial planner and managing partner at SageMint Wealth in Irvine, California, recommends having two credit cards, or three if you're a business owner: one for primary expenses, a second as a backup and a third to keep business expenses separate.

"Paying 20% interest on a balance that you've accumulated and then you pay interest on top of that, I mean, that's a really big hole that you're continuing to dig and it's going to be really hard to get out of if you don't pay your credit card balance," Tran said.

Americans' collective credit card balances reached $986 billion in the last quarter of 2022, according to the Federal Reserve Bank of New York. Those contributing to that debt should not be using credit cards because the interest rates they're paying outweigh any card rewards.

How you handle credit and paying your bills is an Important factor in your credit history and affects how much you will pay to get credit. When it comes to using a credit card, you have rights and responsibilities under the law, including your right to dispute billing errors.

With a credit card, you borrow money to buy something now. Later you pay back the money, usually with interest. Some people use a credit card to buy things they cannot afford right now or to help build or improve their credit history. You pay less for your credit if you pay everything you owe every month.

Are you considering paying your credit card bill through automatic debiting? You may have the option to sign up for automatic debiting where you give your credit card issuer account information and permission to electronically withdraw your payment directly from your bank account. But the convenience of automatic debiting comes with risks. If you decide to set up automatic debiting to pay your credit card bill, here are some things to know:

Before transferring any funds from your account, the credit card issuer (usually a bank or credit union) must get your signed written or electronic authorization and give you a copy. The issuer must also clearly inform you of the terms of the debits, including their timing and amounts. If the debits will vary, they could state a range of payment amounts. If a payment will vary by more than that range, they have to notify you at least 10 days before the payment will be debited (to give you time to ensure you have enough money in your account to cover it).

Credit cards can make your life a lot easier, but they can also create major financial headaches for you when they're used to purchase the wrong things. If you think it's OK to use your credit card for any and all purchases because of the swell perks and rewards you'll get, think again.

If you're low on cash one month, it might be tempting to make your mortgage payment with a high-limit credit card, but there are problems with this thinking. For one, many mortgage companies won't let you pay your mortgage with a credit card. Although there are third-party companies that will enable you to use your credit card to pay your mortgage, they often also charge fees for this convenience, which will just add to the amount you're paying in bills each month.

Should you be able to circumvent your mortgage servicer and find a way to pay your mortgage with a credit card, it's still a bad idea if you don't plan on paying off your card balance in full each month: You're already being charged interest on your mortgage, so why add more interest to the amount you're putting on your credit card balance?

Although creditors (other than your credit card issuer) will not be able to tell you charged a bail bond, there is still a good reason not to put this transaction on your card. Since a bail bond is regarded as a cash advance by credit card issuers, paying for a bail bond with a card will usually mean you'll incur a fee (generally around 3 percent, but it could be higher) as well as a higher interest rate (like 25 percent).

Alternate payment methods include everything from money orders to person-to-person cash transfers, and are also generally considered a cash advance. While it might be convenient at the time to use your credit card for such purchases, you'll wind up paying a lot more for it than you would expect, including a one-time fee of around 3 percent and a higher interest rate.

When you don't have enough cash on hand to pay for medical bills, one of the worst things that you can do to your current and future finances is put to them on your credit card. Medical care is expensive, and paying for it with a credit card that will charge you high interest on top of this is a bad idea.

If you have large medical bills that you can't pay immediately, don't whip out your credit card -- contact the hospital's financial offices and set up a payment plan. Chances are, you will be paying much less in interest to the hospital than your credit card issuer will charge you.

Just like medical expenses, the cost of college tuition has far outstripped the cost of living. If you're a broke college student, it can be very convenient to use your credit card to pay that tuition bill.

The best reason not to do this is that you won't be able to pay off your credit card before you have to start paying interest on it. Plus, many schools will tack on a convenience fee of 2 to 3 percent for the "privilege" of paying your tuition with a credit card. Bottom line: It's not worth it. If you're having trouble making your tuition payments on time, talk to your adviser or the bursar's office at your school; they'll tell you the types of low-interest student loans, grants, scholarships or work-study programs available to you to help defray the costs of your education.

While it's possible (and perfectly legal) to pay your debt to Uncle Sam with a credit card, there is an excellent reason why you shouldn't: Your tax preparer will likely charge you a convenience fee of 2 to 3 percent for using a card. If you're only on the hook for a tax payment of several hundred dollars, that fee won't amount to much. On the other hand, if you owe Uncle Sam thousands of dollars, that 2 to 3 percent fee can really add up. If you think you really can't pay your entire tax debt when it's due, speak with your tax preparer or contact the IRS ahead of time and work out some kind of payment plan. You can find out how to do this by visiting the official IRS website.

Think this is a crazy idea? People have done it. However, many auto dealers will not take credit cards because the fees to process a credit card transaction are so high. However, if you find one willing to take your card, it will likely make you pay transaction fees of 1 to 2 percent. By doing so, you're adding that amount to the price of the car -- and it could cost you hundreds of dollars.

In addition to paying more than you should, with many cars costing far more than $10,000, you are likely going to max out your line of credit, sending your credit score plunging downward. Why not borrow from a bank or credit union if you don't have all the cash you need? You could get rates near 3 or 4 percent, compared to about 15 percent interest on the average credit card. In addition to getting a favorable interest rate, you'll be adding an auto loan to your credit report, which will help your credit score.

If you don't have the money for the down payment on a loan, don't get the loan: You obviously can't afford it. You're adding a large cost to the sales price of your item -- the high interest rates of a credit card. If you must borrow, wait and save up your money for the down payment; when you finally qualify for financing, fill out an application.

A business without a credit rating is going to have a tough time getting a credit card without the personal guarantee of its owner, company officer or board member. Because of this, many people who are starting a new business put expenses on personal credit cards.

Many people will tell you that buying virtual currency like Bitcoin is risky, no matter how you acquire it, but buying with a credit card adds even more risk. The world of Bitcoin is unregulated and many operators are shady; the reason you should be wary of virtual currency sellers who accept credit cards is that it's very risky for them to do so -- buyers can call the credit card company to revoke the charges while keeping the virtual currency. Be cautious whenever giving your credit card information to a third-party seller.

Purchase cards make it easy for you to buy the things you need for your agency. All Schedule contractors are required to accept the government purchase card for purchases up to the micro-purchase threshold and encouraged to do so for purchases over it.

The Suica is a prepaid e-money card for moving around and shopping. There is no more need to buy a ticket from a vending machine. Just touch your Suica to the ticket gate and the fare is automatically deducted from your Suica. The Suica can be used not only for JR East trains, but subways and buses as well. See the Suica Map for transportation systems you can use with the Suica.

Note:Prices include a deposit of 500 yen. The difference between the adult's card and the child's card is the amount deducted when using transportation. When using a child's Suica card, the child's fare is deducted, and when using an adult's Suica card, the adult's fare is deducted.

To get your wonderful picture postcards, present your receipt showing a Suica purchase of 500 yen or more along with a Suica pamphlet at one of two great malls in Tokyo: ecute Tokyo (located in JR Tokyo Station) or mAAch ecute KANDA MANSEIBASHI (approximately 5 minutes walk from JR Akihabara Station).

Let's say you've looked through our current offers to buy points and miles and decided to make a purchase. If you are going to purchase points or miles, it pays to know which credit card will earn you the best return. 041b061a72




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