Avoid using your credit card in these cases.
Don’t use your credit card when you don’t want to overspend. Some people have a hard time keeping their spending under control and their obsession with shopping under control when it comes to using their credit card.
That five-figure credit card limit could make it hard to remember why you shouldn’t buy that shiny item, that brand name wallet, etc.
If you are close to your credit limit or worried about racking up a high credit card balance, you may want to reach for your debit card or use cash and let it go and not have unnecessary spending. There are many great benefits for credit card users. Just make sure you can spend wisely, whichever payment method you choose.
Don’t use your credit card; when you don’t want the merchant to pay a fee. You may want to avoid using credit cards with smaller merchants that you especially want to support.
They may appreciate it if you pay by cash or check, because then they don’t have to pay processing fees. Even debit cards are better than credit cards from the merchants’ point of view, because debit card processing fees tend to be lower than what they would pay for a credit card transaction.
Don’t use your credit card; when you have to pay additional bill. Merchants pay processing fees every time you use a credit card. Most of the time, those fees are built into the merchant’s prices, just like any other cost of doing business. But sometimes a merchant may pass the processing cost directly to you by including an upfront surcharge or “convenience fee” for using your credit card.
In those cases, you’ll probably want to pay some other way, unless your credit card rewards are high enough to cancel out the surcharge.
Now that you know this, you can opt for a credit card if you don’t have one and do better. Before choosing a credit card, consider the following steps:
Check your credit. Find out which credit card offers you might be eligible for by checking your credit score. The better your score, the better your chances of being approved for cards with better benefits and higher credit limits.
Consider the type of card you need.
There are three types of credit cards:
Cards that help your credit when it is limited or damaged.
Cards that save money on interest.
Cards that earn bonuses.
The best card for you is one with features designed to meet your specific needs.