We’ve grown accustomed to using our credit cards for almost everything – gas, travel, shopping, etc. But a recent article by MSN Money tells card holders they should use caution when making certain purchases to avoid credit card trouble. Here are four times when you should steer clear or use caution when using plastic:
- When you are financing your start-up enterprise – Although some advisors may say it is all right for your credit cards to play a small role in funding a business, it is important to keep a few things in mind. First, your business credit is usually linked closely with your personal credit. This could cause issues for your personal finances if your business runs into financial problems. Second, business credit card rates are lower than personal credit cards rates most of the time. It might not be a bad idea to look into using a business credit card for a start-up enterprise.
- When the purchase is morally questionable – People may be surprised to know that many credit card companies will decline and refuse payments for certain questionable purchases. For example, a Wall Street Journal website, SmartMoney, recently announced that at least one card company will not authorize payments for medical marijuana, online pornography, or casino chips. To avoid these rejections, use caution when making morally questionable purchases on your credit card.
- When you already have too much debt – It is important to steer clear of accumulating more credit card debt when you are already overloaded. Try to use cash or debit cards when making necessary purchases and use your credit card only when you have to until you get your debt under control. If you are in credit card trouble, every billing statement has a phone number where you can call and receive advice on how to pay off your debt.
- When you want a peaceful taxi ride – Good luck trying to pay a cab fare with plastic without hearing an earful from your taxi driver. Although cab companies accept major credit cards, many drivers will get irritated because they get “taxed” on this money. It is also better for you to pay with cash because every time you swipe your card, they impose a 5% transaction fee.
Overall, credit card use is not bad, is it just important to use them wisely and with caution for certain transactions! Click here to learn more and read the entire article.