5 Expenses to Avoid Charging on a Credit Card, According to Experts

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• It’s not a good idea to put large expenses you can’t pay off in a reasonable time on a credit card.
• You could end up paying loads of interest and incur unmanageable credit card debt.
• Putting car payments, mortgage or rent, or tuition on a credit card could land you in trouble.
• Read Insider’s guide to the best balance transfer cards.

For the past year, I’ve been extra mindful about what I’m putting on my credit card. When the pandemic hit, I wanted to be careful with my finances to make sure I was saving more than spending. That meant updating my budget (to meet the changing costs associated with staying at home) and making sure I wasn’t overspending or overusing my credit card.

It also made me realize that if an emergency in my life did happen during this pandemic (whether associated with health, home, or major income loss) I’d have to rely on my credit card even more. To help plan for the unexpected, I began to wonder if there are expenses that shouldn’t go on a credit card.

After chatting with financial experts, I learned about the five expenses that don’t always make sense to end up as part of your credit card balance.

Medical bills 

In the past, I’ve used my credit card to pay for smaller medical bills (after annual physicals or even for procedures that cost a few hundred dollars) but I wondered if it would make sense, in case of an emergency, to charge a hospital bill or a larger medical expense?

R.J. Weiss, a CFP, suggests that it might not always be the best idea to pay for medical bills using your credit card.

“You should avoid paying medical bills in full on your credit card when you’re likely to carry a balance,” says Weiss. “Medical providers often allow you to pay in monthly installments at either a zero or much lower interest rate than your credit card company.”

In the future, if you’re facing a costly medical bill, Weiss recommends first negotiating the bill and then working out a payment plan with the medical provider. If you can pay in full, Weiss shared that you might be able to get the full price lowered. All of these options might be better than carrying that large bill on your credit card balance with a higher interest. 

Mortgage payments 

During the pandemic, a lot of my friends ended their rental leases and bought houses outside of New York City. Many of them, for the first time, began paying a mortgage. I wondered, if I eventually followed in their footsteps, how I’d pay that monthly price (cash or credit card).

Adam Laibson, a CFP, shared the advice that paying your mortgage or rent via credit card can be a dangerous decision if not appropriately handled.