4. Medical bills

Paying medical bills through your credit card can be a mistake in a number of ways. Always remember if you are uninsured, you should never just pay the bill right away if you seek medical care in the event of an emergency. It is often found that the items on the bill are negotiable, and you can save yourself a lot of money by doing a little research and trying to get a better deal.

Many people make the mistake of using their credit cards for emergencies but this can cause a financial downfall. It’s always better to have an emergency savings fund. In addition to charging unforeseen expenses, people will often use credit card when buying items on impulse.

5. Taxes

It’s a natural human tendency that when taxpayers find themselves with an unexpectedly large legal responsibility, they will try to clear it off with credit card and the Internal Revenue Services makes it easy to make such payments. However, you should not do this often as the payment processors used by the IRS will collect a fee of 1.88 percent - 2.35 percent of the total. Also, the IRS will allow you to set up a payment plan with a more competitive interest rate than a credit card.