00:00A pile of credit cards fattens a wallet before it thins it, and NerdWallet reiterates,
00:06using a credit card to pay for things you have already budgeted for tends to be the best approach.
00:11Paying off balances in full and on time is key to avoid any interest that could negate what the rewards
00:18are worth.
00:19Here are five scenarios when using a credit card to earn rewards just simply isn't worth it.
00:24When paying for gas, some stations assess a surcharge on credit card payments to recoup the cost of the swipe
00:32fees.
00:33According to the Association for Convenience and Fuel Retailing, this fee can range from 1.5% to 4%.
00:40So paying with cash or your debit card may be cheaper and preferable.
00:45The other times it doesn't make financial sense is when paying for tuition or making payments to the government.
00:51It's also best to avoid a credit card payment for purchases you can't pay off right away,
00:56unless you can and will pay the balance in full and on time.
01:02Also, check your local friendly establishment doesn't have a credit card surcharge greater than your reward rate.
