10 things you should never buy with a credit card

  • Automobiles

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    Think this is a crazy idea? People have done it. However, many auto dealers will not take credit cards because the fees to process a credit card transaction are so high. However, if you find one willing to take your card, it will likely make you pay transaction fees of 1 to 2 percent. By doing so, you're adding that amount to the price of the car -- and it could cost you hundreds of dollars.

    In addition to paying more than you should, with many cars costing far more than $10,000, you are likely going to max out your line of credit, sending your credit score plunging downward. Why not borrow from a bank or credit union if you don't have all the cash you need? You could get rates near 3 or 4 percent, compared to about 15 percent interest on the average credit card. In addition to getting a favorable interest rate, you'll be adding an auto loan to your credit report, which will help your credit score.