Reasons Not To Pay Taxes With A Credit Card

Everybody must pay taxes to the IRS at the end of the year; unless of course you can prove that you never received any income during that period. Even though paying taxes is a duty for all citizens, there are times when this liability will come knocking when you are not financially prepared. If your returns indicate that you owe money to the government in form of taxes, you must meet this obligation otherwise you may face legal action and in addition, ruin your good credit. When you have maintained a good credit history for a while, your credit card company might increase your limit and this means you can use the card for almost all expenses including paying the taxman. Before you use your credit card to pay tax and ruin what is a good credit rating score, think about;

The money that tax payment processors will deduct from your card to pay themselves is an expense to you. The IRS appoints collectors to act as contact points for people wishing to pay tax through digital means and these appointees are paid by the tax payer. This fee will be deducted from the credit card limit and hence increase the utilization.

You want to be in the good side of the law by paying your taxes promptly but if you use a credit card, it is easy to underpay. Did you know that an underpayment of your taxes accrues interest charged at different rates every quarter? You may be trying to save face by paying your taxes with a convenient credit card to get good credit but what is a good credit rating score can only be achieved by avoiding it completely.

Related Source: Why Paying College Tuition With A Credit Card Is Unwise

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Preparing Your Credit Card for Use Abroad

Travelling abroad is rather exciting despite the purpose of the trip. The local cuisine, and experience of new cultures, hotel living and new sites to see are all aspects to look forward to. For security reasons, most people would rather travel with credit cards instead of cash and this is not only convenient but practical. If you have been looking for ways on how to build good credit, then this is how you need to prepare;

Alert your credit card company of your travel plans by making it clear how long you will be away and where you are going. You are aiming to achieve what is considered a good credit score but this will not happen if you have no access to the card. Credit card companies are ever on the look-out for suspicious card activity and one of the reasons that could lead a card to be flagged is use abroad.

Travelling to a new place should always be a security concern. We all know that you cannot be too careful when guarding your belonging that is why it is important to know who to call in case of an emergency. Being able to cancel your card can be quite helpful in your bid to achieve what is considered a good credit score because it will stop unauthorized purchases or withdrawals.

Travelling confidently is possible by taking into account all the necessary measures of how to build good credit. Steps such as carrying a separate card for back up and opting for a chip and pin instead of a magnetic strip card are sure ways to have peace of mind while on travel. You can also opt to carry a little cash and have a relative wire more as you need it if you wish not to use cards.

Related Source: How to Achieve Financial Freedom by Improving Personal Credit

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