Credit Cards: Three Things You Should Never Charge


Analysts at Motley Fool Ascent say never use a credit card to pay your mortgage/rent, medical bills or sports bets.

GREENSBORO, N.C.—Credit cards offer purchase protection and are a great way to pay for travel, products or services. But experts say there are three things you should never do when paying with a credit card. Motley Fool Ascent recently had an article about this.

Three purchases on the no-no list: are your mortgage/rent, medical bills, or impulse purchases, which include sports betting and lotteries.

“Your mortgage or rent payment, these are very large payments and it can be difficult to pay off the amount in one billing cycle, which can accrue interest and multiply the amount you owe. Often, you'll also So have charges that have been hit by services,” said Motley Fool Ascent analyst Jack Caporal.

When it comes to medical bills, you may have heard that medical debt is not included in your credit report and score. While this is true if you use a credit card to pay for medical expenses, that protection is thrown away.

“Once something shows up on your credit card, whether it's debt type, purchase type, it has nothing to do with the credit bureaus. The credit bureaus aren't going to look at it and say, 'Oh, it's a medical expense, so we're going to ignore it or Forgive it' that wouldn't have happened if it was a credit card,” Caporal said.

If you use a credit card to pay for medical expenses, a medical emergency can turn into a financial emergency, he said. Your best option for medical bills is to set up a payment plan with a doctor's office or hospital.

Credit cards can make it easy to spend money when it comes to sports betting, lotteries or impulse purchases, but experts say they're not a get-out-of-free card for buying things you want but can't.



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