3 Things You Should Never Charge on Your Credit Card

I put nearly every purchase I make on a credit card, and there are good reasons for that. I love the flexibility and convenience that the best credit cards give me, along with the purchase and fraud protections they offer. And I'm always hoping to improve my credit score by continuing to make on-time payments on my cards.

However, some expenses just shouldn't be covered with credit cards -- read on for a few to avoid.

1. Cash withdrawals

First and foremost, don't use your credit card to take out cash -- even though you might be able to via a cash advance at an ATM or a convenience check. If you dig into your credit card's fine print (in the paperwork you received with the card, or on the issuer's website), you'll see why doing this is a bad idea.

Your card's cash advance limit is typically much smaller than your total credit limit, so if you're hoping to make a large purchase using cash from your card, you likely won't be able to do so. I logged into one of my credit card accounts to see my own details.

Although the credit limit on the card in question is more than $20,000, my credit limit for a cash advance is only $1,160. And the APR for cash advances is also likely to be far higher than your purchase APR -- in my case, 9 percentage points higher. Ouch.

And unlike card purchases, where you get a grace period before interest is charged, with a cash advance, that interest starts accumulating immediately, and you'll be charged a cash advance fee. Even if you pay off your cash advance the same month you withdraw it, you'll pay extra.

Don't take cash out using your credit card -- if you need cash, it's best to use your debit card at an ATM or visit your bank.

2. Rent or utility payments

Depending on your circumstances, you might be able to use a credit card to pay your landlord or utility companies. Even if it's allowed, it's generally not a good idea, though.

It's better to pay your landlord or utility bills via your bank account (whether that's with a check, online bill payment system, or even a payments app linked to your top-rated checking account). The reason is that you'll likely be charged extra to use a credit card -- perhaps 1% to 3% of the bill. If you're using a rewards credit card, that could eat up any rewards you would earn otherwise, and depending on the rate, that extra fee could surpass them.

Anytime a credit card payment will cost you more than just using money in your bank account, it's best to opt for that.

3. Any purchase you can't afford

One big problem that some people have with credit cards is that they can seem like access to "free money" -- you can use them to buy nearly anything, and your credit limit could represent much more money than you have in your bank accounts at any given time. This can be dangerous if you're prone to overspending.

It's best to pretend like your credit card is directly linked to your bank account (it's not, which is one of the reasons credit cards are a safe way to buy things), and not overspend beyond your ability to pay off the charges when your bill comes due every month. The only exception to this is if you're using a credit card to finance a large purchase over time via an intro 0% APR offer.

Need to finance a big purchase? Click here for our picks for the best credit cards with 0% intro APR offers.

Even in this case, however, it's a good idea to figure out your own minimum payment on the card every month (divide what you owe by how many months you have). The minimum monthly payment the card issuer generates likely won't see you paying off the entire purchase by the time the 0% intro APR offer is over. (And this makes sense -- credit card companies want to make money, and when consumers pay interest on their cards, they make a lot of it.)

Credit cards come with a lot of perks -- you can build credit, safely make purchases online, and enjoy a lot of convenience. Just avoid cash withdrawals, utility and rent payments, and purchases you can't actually afford.