Recently I ran across this article (yes, it’s almost two years old now, but I’m sure it’s still relevant) about ten things that you shouldn’t charge to your credit card, because they may make it seem like you’re a financial risk to the credit card companies. I found this list interesting, since I’m guilty of three of these:
- Traffic tickets
- Retreading your tires
- Bargain binges
- Adult playthings
- Marriage counseling and therapy
- Lottery tickets
- Cash advances
- Personal pampering
- Income taxes
- Booze
I’m guilty of 3, 8, and 10. For 3, I use my credit card every time I go to Wal-Mart, which is apparently considered a “lower-cost retailer.” For 8, I don’t know if nice restaurants are considered “pampering,” but I do use my credit card if I go out to a nice restaurant, since I usually don’t have the cash to cover the bill. And I would definitely use my credit card if I were to ever go to a spa. And for 10, of course I’m guilty of using my credit card at BevMo. How else would I pay for my booze?
I just have a hard time believing that credit card companies would be looking this closely at people’s statements. I have literally dozens of credit card transactions a month, since I use it everywhere I can, just to avoid having to deal with cash and change and all that. Should I be using cash at Wal-Mart and McDonald’s? According to that article, the answer seems to be yes.
The list does seem quite arbitrary, though. Like where’s bail? If I were working for American Express, I would worry much more about someone who charged bail to their credit card than someone who paid off their traffic tickets using credit. Or lawyer fees. Doesn’t that mean that you’re in trouble with the law a lot? And saying that personal pampering appearing on your statement might make it “look like you’re trying to relax because you’re worried about — what else — money” seems like kind of a stretch. Can’t a guy (or girl) go out for some pampering every now and then? Not everything people do to relax means that they’re trying to get away from their financial woes.
Despite what people say about the evils of credit cards (Suze Orman once proclaimed that everyone should use cash for everything), I actually like them a lot. They are so convenient. None of the awkward counting of bills and coins. Just one little card, accepted in most places. It makes it possible to make three- and four-digit purchases without carrying a ridiculous amount of cash on you. I think it’s when you’re not in control of your finances that credit cards are evil. Yes, charging some insane double-digit percentage interest rate seems evil. But if you pay off your credit card every month, that’s totally irrelevant. Though I suppose paying your bill every month is easier said than done for many people. And how can you build your credit score without using your credit card?