10 Times You Shouldn’t Use Your Credit Card for Payment (2024)

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10 Times You Shouldn’t Use Your Credit Card for Payment (1)Jenn SinrichUpdated: Jan. 27, 2024

    Credit cards might be convenient and reliable, but here are some scenarios where swiping or entering your digits could be dangerous.

    10 Times You Shouldn’t Use Your Credit Card for Payment (2)

    Tim Robberts/Getty Images

    We don’t even think about swiping our credit cards these days since it is so common. But, more technology can come with more problems. There is so much to learn when it comes to saving money such as following the habits of debt-free people, learning which bills you shouldn’t put on autopay, and watching out for these Venmo scams. But for now, we’re just going to start with the basics. Here are a few times when you should think twice before whipping out the magic card.

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    When a website address does not begin with “HTTPS”

    If you don’t see these five letters in the address bar of the website you are trying to make a payment on, it means the site is not secure. “HTTPS is a protocol for secure communication over a computer network which is widely used on the Internet,” explains Robert McKee, lawyer and certified international privacy professional. “Its main motivation is authentication of the visited website and protection of the privacy and integrity of the exchanged data.” If the site does not include an “s” in this beginning part of the URL, opt out of the online purchase, and try using a third-party payment system like PayPal instead. These sites act as another barrier between an organization and your credit information. Make sure you read up on these common Amazon scams, so you can avoid them at all costs.

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    Marko Geber/Getty Images

    When you’re responding to an email

    It is actually better to provide your credit card to someone over the phone (only when you have initiated the call—more on that later) or even via text message than it is to respond with your credit card number in an email. “There is a technique called ‘phishing’ or ‘spear phishing,’ and it involves emails that are designed to extract your credit card number for an unauthorized purchase,” warns Stephen Lesavich, PhD, JD, attorney, credit card expert, and best-selling author. Before clicking on any link, look for phishing clues like spelling mistakes, strange use of English, and logos that look off. Watch out for these Facebook marketplace scams next time you go shopping.

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    slobo/Getty Images

    When charity fundraisers approach you on the street

    Quite often, and mostly in big cities, you’ll see charity fundraisers walking the streets in an attempt to collect donations in the form of money for a variety of causes—the environment, child welfare, and pet care, to name just a few. They might only ask to take your name down so they can contact you at a later date, but if they ask you for your credit card, beware. “These causes are known to target people’s emotions to get them to donate,” warns Lesavich. “Although legitimate in some cases, they could instead be scams to charge your credit card and get your credit card information.” If you want to contribute to these causes, a safer bet is to visit their website, check that it’s secure, and then make a donation from there. Learn about these hidden fees you had no idea you were paying.

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    YakobchukOlena/Getty Images

    When speaking to anyone over the phone

    Try to avoid giving your credit card information over the phone for the simple reason that you don’t know where it will go once you hang up. You also don’t know who’s listening in on the call—whether it’s people around you, someone else on the line, or even the person on the other end of the phone who’s taking down your digits. “One of the most common examples of card information being given over the phone is through delivery food purchases,” says Jeremy Brant, VP of Information Technology for Florida Capital Bank. “In situations like these or other instances where a vendor is asking for card information over the phone, order the service online or pay cash in person.” With delivery food, should the location not have its own website (or the website is not secure), third-party smartphone apps like Seamless or GrubHub can fill in the gap. Here are 13 things credit card companies know about you.

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    Goodboy Picture Company/Getty Images

    When an online merchant has no reviews or previous listings

    If you’re considering buying from a merchant on any type of marketplace—from eBay to Etsy—look them up online. If you Google them and there’s only one listing for the merchant, with no online reviews, no past experiences from other customers, and no social media accounts, you should think twice about handing over your card. “The Internet has given consumers a much more effective way to gauge the reputation of the companies we do business with, so use it,” suggests Adam Jusko, founder and CEO of creditcardcatalog.com, a card comparison and news site. Along these same lines, look for contact information on the websites you buy from, including address and phone number if you’re unfamiliar with the merchant.

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    AscentXmedia/Getty Images

    When you’re making a purchase you can’t afford

    This sounds like a no-brainer, but the mounds of debt many people hold on their credit cards prove that it’s not. “Use your credit card for the convenience it provides and any rewards you might receive, but only charge what you know you can completely pay back at the end of the month,” suggests Jusko. “While some people are building up debt on their credit cards, other people who treat their cards as a tool of convenience are actually making hundreds of dollars from their cards.”

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    Jacob Lund/Shutterstock

    When a merchant needs to take your card out of view for payment

    This scenario is common when paying your tab at a restaurant or bar. Especially if you’re not traveling overseas, chances are that it’s fine, but allowing any merchant the chance to take your card out of view provides the potential for writing down or taking pictures of the card for use later. “A high-risk destination example is Brazil. During the 2016 Olympics, multiple people had their CCs cloned while at restaurants,” Mark Deane, CEO of ETS Risk Management in Bethesda, Maryland, says. “One security manager of a large corporation even told a story of being at a table and catching the waiter with a cloning device under his jacket, trying to swipe the card at the table. The waiter ran off when challenged.” The best practice is to never to let your card out of your sight and don’t be afraid to ask merchants to bring payment options to you. “This is becoming more and more common in Europe, where restaurants bring devices to the table to accept payment, and we think this may become more prevalent in the United States as well,” says Alex Cramer, Head of Cards at Final, a mobile-first credit card startup. Check out the cheapest days of the week to do absolutely anything.

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    WAYHOME studio/Shutterstock

    When purchasing online while connected to public Wi-Fi

    Inputting any personal information into a website (whether the site itself is secure or not) can pose risks if the Internet connection is not secure, and this includes public Internet or any Internet without password protection. The consequences are that any sensitive personal information (think passwords, personal data, and credit card information) can be read by anyone trying to break through the network. It is best to wait until you are over a secure connection before inputting any sensitive information, like passwords or credit card numbers. “Delete Wi-Fi networks from your devices that aren’t yours, and make sure to secure your Wi-Fi connection with a unique, private password,” suggests Emmanuel Schalit, CEO of the password manager Dashlane. “Also, don’t use Wi-Fi connections that aren’t known to be secure (think: your coffee shop Wi-Fi, the free Wi-Fi in your building or the airport) unless doing so over a secure VPN.”

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    PeopleImages/Getty Images

    When purchasing something on a public computer

    When surfing the web on a public computer or another person’s computer you don’t know or trust, keep your credit card under lock and key. “A public computer may have devices or software to record all of your keystrokes, also known as keyloggers,” McKee explains. “The computers also might contain malware with other tools for stealing your information.” Because you can’t verify the security of a public computer, you shouldn’t use your credit card on a website you accessed from that computer.

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    ljubaphoto/Getty Images

    If you see bulky, plastic, exposed wires on devices you’re about to swipe through

    Point-of-sale devices that have been tampered with (including the setup of “skimmers” to steal payment card data) can be hard to spot, but they are something to be aware of and avoid. If you see bulky, plastic, exposed wires, or other things that look “off” about the device you’re about to use, consider alerting employees or law enforcement. “More and more, consumers should be looking to ‘dip’ instead of ‘swipe,'” says Cramer. “Swiping reads static data from the mag stripe off the back of the card; dipping reads dynamic data from the chip on the front of the card, adding an additional level of payment security.” Next, make sure you know the times when you shouldn’t use your debit card according to financial experts.

    Sources

    Originally Published: August 26, 2021

    10 Times You Shouldn’t Use Your Credit Card for Payment (2024)

    FAQs

    Is there anything you shouldn't use a credit card for? ›

    They advise against using your credit card to pay for things like rent, gas, cash advances, medical bills, buying a car, and expensive events like weddings. While it can be tempting to put everything on your debit card for budgeting purposes, there are financially savvy reasons to swipe your credit card.

    Is it bad to pay your credit card every time you use it? ›

    When it comes to paying off a credit card, you're better off doing so after every purchase than the alternative — missing payments and collecting interest. However, if it's possible to do so, try ensuring that you have a balance that hits your statement every month.

    What happens if you use 90% of credit card? ›

    If you've got a $1,000 limit and spend $900 a month on your card, a 90% credit utilization ratio could ding your credit score. If you pay it off as your balance hits $300, or three times a month, your credit score shouldn't be hurt by a high ratio.

    What is the number 1 rule of using credit cards? ›

    Pay your balance every month

    Paying the balance in full has great benefits. If you wait to pay the balance or only make the minimum payment it accrues interest. If you let this continue it can potentially get out of hand and lead to debt. Missing a payment can not only accrue interest but hurt your credit score.

    What bills should I not pay with a credit card? ›

    Mortgages, rent and car loans typically can't be paid with a credit card. You may need to pay a convenience fee if you pay some bills, like utility bills, with a credit card. Using a credit card for your monthly bills can offer opportunities to earn rewards.

    What are 5 cons of using a credit card? ›

    5 Disadvantages of Credit Cards
    • High-Interest Rates. If you carry a balance on your card, the interest rate can be as high as 30% or more. ...
    • Potential for Overspending. It's easy to get caught up in the moment when using a credit card instead of cash or a debit card. ...
    • High Annual Fees. ...
    • Hidden Costs. ...
    • Credit Card Debt.
    Dec 21, 2022

    What is the 15 3 rule on credit cards? ›

    What is the 15/3 rule? The 15/3 rule, a trending credit card repayment method, suggests paying your credit card bill in two payments—both 15 days and 3 days before your payment due date. Proponents say it helps raise credit scores more quickly, but there's no real proof.

    How to raise your credit score 200 points in 30 days? ›

    How to Raise your Credit Score by 200 Points in 30 Days?
    1. Be a Responsible Payer. ...
    2. Limit your Loan and Credit Card Applications. ...
    3. Lower your Credit Utilisation Rate. ...
    4. Raise Dispute for Inaccuracies in your Credit Report. ...
    5. Do not Close Old Accounts.
    Aug 1, 2022

    Why did my credit score drop 40 points after paying off debt? ›

    It's possible that you could see your credit scores drop after fulfilling your payment obligations on a loan or credit card debt. Paying off debt might lower your credit scores if removing the debt affects certain factors like your credit mix, the length of your credit history or your credit utilization ratio.

    Is it OK to use 50% of credit card? ›

    A general rule of thumb is to keep your credit utilization ratio below 30%. And if you really want to be an overachiever, aim for 10%. According to Experian, people who keep their credit utilization under 10% for each of their cards also tend to have exceptional credit scores (a FICO® Score of 800 or higher).

    Is 0% utilization bad? ›

    While a 0% utilization is certainly better than having a high CUR, it's not as good as something in the single digits. Depending on the scoring model used, some experts recommend aiming to keep your credit utilization rate at 10% (or below) as a healthy goal to get the best credit score.

    Is using 100% of credit card bad? ›

    The less of your available credit you use, the better it is for your credit score (assuming you are also paying on time). Most experts recommend using no more than 30% of available credit on any card.

    What is the golden rule of credit card use? ›

    Pay Off Your Balance

    The golden rule of credit card usage is to do everything you can to pay off your entire balance each month. If you can do this, you won't be charged any interest.

    What is the 2 3 4 rule for credit cards? ›

    The 2/3/4 rule: According to this rule, applicants are limited to two new cards in a 30-day period, three new cards in a 12-month period and four new cards in a 24-month period. The six-month or one-year rule: Some issuers may only let borrowers open a new credit card account once every six months or once a year.

    What is the biggest mistake you can make when using a credit card? ›

    Not paying on time

    Sometimes, schedules are busy and budgets are tight. But it's best to always pay at least part of your credit card bill on time. Missing or late credit card payments can have a big impact on your credit score and fees.

    Is it OK to use credit card for everything? ›

    Nowadays, credit cards are accepted almost everywhere, and some people never carry cash at all. In general, NerdWallet recommends paying with a credit card whenever possible: Credit cards are safer to carry than cash and offer stronger fraud protections than debit.

    Is there anything you can't pay with a credit card? ›

    Loans, like mortgages, are unlikely to be able to be paid with a credit card. If they can, they charge a significant processing fee.

    Do and don'ts of a credit card? ›

    DON'T reach your credit limit or “max out” your cards. DON'T apply for more credit cards if you already have balances on others. DON'T ignore the warning signs of credit trouble. If you pay only the minimum balance, pay late or use cash-advances to pay daily living expenses, you might be in the credit danger zone.

    Is it a bad idea to use a credit card? ›

    Responsible Credit Card Uses

    Many of us use credit cards irresponsibly and end up in debt. However, contrary to popular belief, if you can use the plastic responsibly, you're actually much better off paying with a credit card than with a debit card and keeping cash transactions to a minimum.

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