The Best and Worst Expenses to Pay With a Credit Card

A credit card is not extra income. It’s not your emergency fund. It’s a tool—and like any tool, it can build something solid or burn your whole financial house down, depending on how you use it.

Used wisely, a credit card can earn rewards, offer purchase protection, and give you some float time to breathe between paychecks. Used poorly, it’s just a high-interest ticket to regret. If you’re tired of wondering why your statement feels like a crime scene every month, it’s time for a little clarity.

In this article:

The Smart Stuff: Best Things to Pay with a Credit Card

The Trap Door: Worst Things to Put on a Credit Card

The Golden Rule of Credit Card Use

The Smart Stuff: Best Things to Pay with a Credit Card

1. Bills You’ve Already Budgeted For

That phone bill? Your Spotify subscription? Internet? Great. These are predictable, budgeted, and boring. Perfect for your credit card. You get rewards, you avoid late fees, and you build your credit without trying.

Just don’t forget to pay the credit card on time. That’s how people end up financing their Hulu subscription at 24.99% interest.

2. Travel Expenses

Flights, hotels, car rentals—this is where credit cards shine. They offer rental insurance, trip protection, fraud alerts, and all those fancy travel points.

Also, don’t even think about using a debit card for car rentals. They’ll treat you like you walked in asking to borrow a jet ski with a Blockbuster card.

Just because your credit card offers travel perks doesn’t mean you should use them to fund a trip you’ll regret. If you’re debating whether to take your baby on vacation, read this first and thank yourself later.

3. Big Purchases with Warranty Potential

Need a new fridge, laptop, or phone? Many cards offer extended warranties and purchase protection. Which means if that brand-new appliance dies 366 days after you bought it, you might actually have options other than angry sobbing.

This does not mean you suddenly “need” a $900 air purifier for your living room. Use the perks, not the excuse.

4. Online Shopping

Credit cards come with better fraud protection than debit cards. If your info gets stolen, you dispute it, not eat it. And when you’re already buying something online, might as well scoop up the points.

But let’s be clear: tracking your spending matters more than tracking your packages.

5. Anything You Can—and Will—Pay Off Immediately

If the money is already sitting in your account, and you’re just passing it through the credit card to earn points or keep things organized, great. If you wouldn’t buy it with your debit card, don’t put it on your credit card just because it doesn’t feel real yet.

And if groceries are going on the card just to keep the fridge from looking like a rental listing photo, here are some practical ways to feed your family without feeding your debt.

The Trap Door: Worst Things to Put on a Credit Card

As of early 2025, the average American carries approximately $6,455 in credit card debt, according to data from TransUnion. This figure reflects the growing reliance on credit cards amid rising living costs and economic pressures.

1. Rent or Mortgage Payments (When There’s a Fee)

Unless your landlord or mortgage company accepts cards with no extra charge (rare), this is just paying extra money to pretend you can afford your life. Convenience fees of 2–3% add up fast—basically like tipping your debt.

If you don’t have the cash for rent, the credit card isn’t a solution. It’s a stall tactic.

2. Taxes and Tuition

You already owe a chunk of money. Don’t pile interest and processing fees on top. Some people justify it for the points, but unless you’re on a 0% APR card and have a clear plan to pay it off before interest hits, you’re playing a dangerous game with your future self’s stress level.

Better to work out a payment plan directly with the IRS or school. They’ll usually offer better terms than your credit card company.

3. Medical Bills

Medical bills are brutal enough without inviting 20% interest to the party. Most hospitals and doctors will let you set up a payment plan—usually interest-free.

If you’re staring down hospital bills while trying to keep a baby fed and clothed, there are much smarter ways to save and survive without racking up interest—start here if you’re a new parent trying to stretch every dollar.

4. Gambling and Lottery Tickets

If you’re using your credit card to buy a scratch-off or gamble online, we need to have a different conversation. When you use your credit card on most betting sites, they process those charges as cash advances, which means you’re not just paying to play—you’re also paying immediate fees plus sky-high interest starting day one.

According to the Consumer Financial Protection Bureau, these charges have spiked since sports gambling got legalized, and a whole lot of people are getting blindsided. Why? Because your card issuer and the sportsbook aren’t exactly waving red flags before they dip into your wallet. Read the fine print—or better yet, don’t gamble with debt.

5. Emotional Spending

You had a bad day. You’re overwhelmed. You deserve a treat. And now you’re financing that “treat” over six months while cursing your past self.

Look, I get it. We all want to feel something when we hit “checkout.” But there’s a difference between treating yourself and sabotaging your future with overpriced dopamine.

Instead of panic-adding $200 worth of “treats” to your cart, maybe what you really need is ten minutes alone and a deep breath. Here’s a list of no-cost ways to refill your cup that don’t require a checkout screen.

6. Forgotten Subscriptions

The gym you haven’t gone to in eight months. The third streaming service you “needed” for one show. The mystery $7.99 charge that shows up every month like an uninvited house guest.

These sneak onto cards quietly and stay there. Do yourself a favor—go cancel something today.

The Golden Rule of Credit Card Use

If you can’t pay it off this month, it doesn’t belong on the card. You’re not earning points if you’re carrying interest. You’re just paying for your own manipulation.

Credit cards aren’t evil. They’re just sneaky. They give you just enough rope to feel like you’re winning before they wrap it around your budget and tighten. So be smarter than the system.

• Use the perks.

• Avoid the traps.

• Pay in full.

And if it’s not in your actual, real-life budget, pretend your card doesn’t work for that purchase. Because the goal isn’t to earn points. The goal is to stay free.