WHEN NOT TO USE A CREDIT CARD

When you’ll have to pay an extra fee:

Merchants pay processing fees every time you use a credit card. Most of the time, those fees are added to the merchant’s prices, like any other cost of doing business. But sometimes a merchant might pass the processing cost to you directly by tacking on an upfront surcharge or “convenience fee” for using your credit card.

When you don’t want the merchant to pay a fee:

Similarly, you may want to avoid using credit cards with smaller merchants. They may appreciate it if you pay in cash, because then they don’t have to pay the processing fees. Even debit cards are better than credit cards from merchants’ standpoint, because processing fees for debit cards tend to be lower than what they’d pay for a credit card transaction.

When you don’t want to overspend:

Some people have a hard time keeping their spending under control when they use a credit card. That five-figure credit card limit might make it hard to remember why you shouldn’t buy that shiny object. If you’re close to your credit limit or you’re worried about racking up a high credit card balance, you may want to reach for your debit card or use cash.