00:00 The pile of credit cards fattens a wallet before it thins it.
00:04 And NerdWallet reiterates, "Using a credit card to pay for things you have already budgeted
00:08 for tends to be the best approach.
00:11 Paying off balances in full and on time is key to avoid any interest that could negate
00:17 what the rewards are worth."
00:18 Here are five scenarios when using a credit card to earn rewards just simply isn't worth
00:24 it.
00:25 When paying for gas, some stations assess a surcharge on credit card payments to recoup
00:30 the cost of the swipe fees, according to the Association for Convenience and Fuel Retailing.
00:36 This fee can range from 1.5% to 4%.
00:40 So paying with cash or your debit card may be cheaper and preferable.
00:45 The other times it doesn't make financial sense is when paying for tuition or making
00:50 payments to the government.
00:51 It's also best to avoid a credit card payment for purchases you can't pay off right away,
00:57 unless you can and will pay the balance in full and on time.
01:01 Also, check your local friendly establishment doesn't have a credit card surcharge greater
01:06 than your reward rate.
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