Money Management

Credit cards are an expensive lifeline. Read on to find out when you should avoid using them. [[{“value”:”

Credit cards can be useful in a pinch, but their high interest rates and easy availability make them a dangerous option for some people.

For Americans with credit card debt, the average amount is now $6,065, and balances can quickly balloon, considering that the average credit card annual percentage rate (APR) is 22.7%. Even the best credit cards can be risky if used for the wrong purchases.

Here are three purchases you should avoid putting on your credit card.

1. Housing payments

Your monthly housing cost is likely your most significant monthly expense, and putting that payment on your card will likely result in a hefty transaction fee and rapidly accumulating interest.

For example, the average monthly rent payment is $1,739, and you might incur a 3% transaction fee when using your card, pushing the total to about $1,791. That might not seem all that bad until you factor in the average credit card APR of 22.7%.

If it takes you a year to pay off the balance, you’ll spend $228 in interest. This means your original $1,739 rent payment ended up costing you $2,019 — the same as a 16% increase in rent for one month!

Most mortgage lenders won’t let you put your mortgage payment on a credit card, but if they do, you’ll face costs similar to the rent payment example.

Tapping into your savings account is a far better option than using your credit card to pay for housing. Click here to view top-rated high-yield savings accounts.

2. A cash withdrawal

Having easy access to cash is usually a good thing, but cash withdrawals from your credit card are costly. A cash advance from your credit card will often result in the following:

A cash advance fee of up to 5%An interest rate that can be five percentage points higher than your usual APRA bank feeAn ATM fee

You might not have to pay all of these fees, but let’s take a look at three cash advance examples and how much it could cost you:

As you can see, the high interest rate and cash advance fee substantially add to the total amount, even if you pay off the balance in just six months.

3. Tax payments

I’m self-employed, so I know how difficult it can be to estimate your own taxes and use the discipline required to set aside the correct amount.

But even if you don’t have to calculate your own taxes, getting a surprise tax bill is still unpleasant. It can be tempting to reach for a credit card to cover the cost, but you’ll likely have to pay a transaction fee of about 1.8% or higher.

For example, if you owe $2,000 in taxes and charge it to your card, the fee could cost you $36. That might not sound like a lot, but your total balance will cost you $2,295 if you pay off the balance in a year at an APR of 22.7%. That’s a nearly 15% increase to the original tax bill!

If you can’t immediately pay your tax obligation, a better option is to set up a repayment plan with the IRS. You may still have to pay quarterly interest — some plans charge 8% each quarter for individual taxes — but that’s far less expensive than putting the charge on a high-interest credit card.

Credit cards can be a good option if you’re looking to earn rewards, like cash back or travel points. But they can be risky if you use the card to pay for housing, taxes, or a cash withdrawal. In those cases, it’s best to tap into any available savings or work out a repayment plan, if possible, to avoid high credit card interest charges.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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A big part of saving big at Sam’s Club includes its popular house brand Member’s Mark. See which products you should try first. [[{“value”:”

Sam’s Club can be good for your budget in a lot of ways, from the bulk bargains to the 2% Sam’s Cash bonus for Plus members. But you’re not taking full advantage of your membership if you haven’t tried out Sam’s Club’s house brand, Member’s Mark.

This isn’t a typical low-quality generic brand. Most of the Member’s Mark products I’ve tried have been good quality, and the majority of them have excellent reviews online.

Here are a few excellent picks from Member’s Mark to help you start trying out the brand.

1. Member’s Mark Ultra Premium Toilet Paper

We’re particular about our toilet paper in this house, so I’m glad to say the Ultra Premium toilet paper from Member’s Mark is a good deal and a good toilet paper.

It’s quite a bit cheaper than the name brand we used to use, doesn’t shred when you try to get it off the roll, and is thick enough to not feel like public restroom toilet paper. It’s our current go-to.

2. Member’s Mark Select & Tear 2-Ply Paper Towels

Few things are as frustrating in the kitchen as a bad paper towel. The Member’s Mark Select & Tear paper towels give you a workable size sheet that is thick enough to do its job. Plus, they’re several dollars cheaper than the name-brand options.

3. Member’s Mark Organic 100% Pure Maple Syrup

Life is too short for bad syrup. But the real stuff can be quite a bit more expensive than the maple-flavored junk at the supermarket. Member’s Mark to the rescue.

While the Member’s Mark maple syrup is still more expensive than the fake stuff, it’s quite a bit cheaper than even the store-brand maple syrup at my local grocer. This lets us splurge on good-quality syrup without the budget guilt.

4. Member’s Mark over the counter medications

Having seasonal allergies can already feel a bit like a curse, and that’s before you add the extra Allergy Tax that is daily medication so you can do things like go outside. Sam’s Club offers Member’s Mark allergy pills with the same active ingredients as the name brands, but at a tiny fraction of the cost.

You can also find quality Member’s Mark versions of other important over-the-counter medications, including antacids and pain relievers, as well as vitamins and supplements.

Pro tip: If you have a sudden increase in your savings, say from switching to Member’s Mark products over expensive brand names, consider opening a new high-yield savings account to grow your extra cash. For instance, you can open a LendingClub LevelUp Savings account to earn 5.30% APY with $250+ in monthly deposits.

5. Member’s Mark ribs

We tried the Member’s Mark baby back ribs a few weeks ago and were pleasantly surprised at the quality. They come in a two pack for roughly the same we were paying for single racks at the grocery store.

Our house got its first smoker this summer and we’ve been throwing in a couple racks of ribs every weekend. While they’re not the most expensive meat you can smoke, a rack of baby back ribs is definitely not cheap, so we’re glad to have found a tasty option at Sam’s Club.

6. Member’s Mark Heavy Duty Foodservice Foil

My new favorite hobby is cooking ribs in the smoker, but they require a lot of aluminum foil. The rolls of heavy duty foil from Member’s Mark are wide and sturdy enough to withstand the pokey ribs, and long enough that we shouldn’t need another roll for months.

You can get Member’s Mark foil in a few weights (the brand offers a standard, non-heavy-duty version) and widths to suit your own needs and uses. They’re all at an excellent price, though the rolls are a bit large to store.

7. Member’s Mark holiday decor

You can find some surprisingly fun and attractive holiday decor from Member’s Mark for just about any occasion. Right now you’ll see a ton of great autumn and Halloween decor, from pumpkins to skeletons, and the Christmas trees are already starting to pop up.

8. Member’s Mark Ultra Soft 3-Ply Facial Tissues

We have some facial tissue connoisseurs in my house, so we’ve tried a wide variety of types and brands. Member’s Mark Ultra Soft tissues are hands (noses?) down our favorite. They are soft, comfortable on your nostrils, and absorbent.

Member’s Mark also has a less expensive 2-ply facial tissue that we keep around for daily use. But if someone in the house has a cold, we reach for the Ultra Soft 3-ply packages.

9. Member’s Mark Comfort Pro Anti-Fatigue Kitchen Mat

I have a few of these handy mats in both my office — for my standing desk — and in the kitchen in front of my prep space. They’re great for keeping your feet fresher when you’re standing for long periods, and I’ve noticed mine helps with a bit of lower back pain, too.

10. Member’s Mark seasonings and spices

The single best thing you can do to improve your cooking on the cheap is to learn to use seasonings properly. They add tons of flavor without a lot of calories or expense.

If you cook enough to make it through a Sam’s Club-size spice jar, then Member’s Mark spices are definitely worth a look. You can get everything from savory garlic powder to spicy cinnamon for quite a bit less than the grocery store.

Store brands get a lot of (well-deserved) flack, but I’ve found Member’s Mark to be a delightful exception. Start giving these products a try to save money on your everyday essentials.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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What if you could start a business without going it alone? See powerful reasons why more young entrepreneurs want to start a business with friends. [[{“value”:”

You don’t have to go it alone when starting a business. What if you could start a business with one of your favorite people?

Sometimes your friends can be the best future business partners. Whether it’s combining your brainpower for marketing campaigns, applying for business credit cards together, or doubling the balance in your business bank account, starting a business with friends can provide helpful benefits.

Let’s look at some new survey data from Photoroom that shows the rising popularity of “friendpreneurship” — starting a business with a friend.

Young entrepreneurs want to start businesses with friends

A recent survey from Photoroom, an AI photo editor, found that “friendpreneurship” is a rising trend for starting small businesses, especially among the youngest generations of entrepreneurs — millennials and Gen Z:

55% of Gen Z respondents and 42% of millennials told Photoroom’s survey that they are somewhat or extremely likely to start a business with friends.60% of Gen Z entrepreneurs are already involving their friends in their small business ventures (compared to 32% of respondents from all age groups).70% of people said that their best friend would make a great business partner.

The survey also found that the two types of businesses that millennials and Gen Z entrepreneurs are most likely to want to start with friends include restaurants and cafes (33% of survey respondents) and handmade goods businesses (25%).

Benefits of starting a business with friends

Why should you start a business with a friend? Being in business is never easy, and sometimes the stress and complexity can cause conflict between business partners. But friendship can often be a good foundation to start a business. Photoroom’s survey shed light on these benefits of friendpreneurship.

1. Lower stress

Nearly half (46%) of Gen Z entrepreneurs told Photoroom that they believed “reduced stress” was the biggest reason to start a business with a friend. Going it alone as a business owner can sometimes feel lonely; knowing that you’ve got a friend by your side can make the ups and downs of building a company easier to navigate.

2. Stronger trust levels

Being business partners is kind of like being in a marriage — you need to have a high level of trust and belief in each other. Over half (56%) of respondents told Photoroom’s survey that they believed “established trust” was a big benefit of starting a business with a friend. Ideally, your close friends are people you can trust and rely on to do good work, keep their promises, and keep showing up for your business’s shared success.

3. Shared workload

Photoroom’s survey saw 51% of respondents agreeing that “shared workload” was a big benefit of friendpreneurship. “Many hands make light work,” as the saying goes, and when you can share the burdens and joys of entrepreneurship with one of your best friends, it makes the journey easier.

Having a business partner can also help your business grow faster, by spotting opportunities and capitalizing on new trends. And being in business with your friend can give you an extra set of eyes on the road and hands on the wheel.

4. Shared vision and values

Sometimes the most important benefit of starting a business with a friend is “shared vision and values,” as mentioned by 47% of Photoroom survey respondents. Having a friend as a business partner can help you keep your business focused on your True North — your mission and purpose.

And working with a friend can help you get clarity about the complex choices and hard conversations that business owners sometimes need to deal with. These can include trying new things, not spending money on unsuccessful products, canceling a contractor relationship, or terminating an employee. Good friends need to be honest with each other, especially when their business’s success is on the line.

Bottom line

Being self-employed doesn’t have to mean being alone. Starting a business with a friend can put a trusted partner at your side to help you accelerate your small business success — and perhaps put more money in your business bank account.

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This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Only a small percentage of people have perfect credit scores. Learn about their smart habits that help them maintain their credit scores and save money. [[{“value”:”

Perfect credit is a rare feat. Under the widely used FICO® Score system, 850 is a perfect score. Only 1.54% of Americans have achieved this, according to Experian. While you don’t need absolutely perfect credit, a high score is good to have. It can help you get approved for the best credit cards and low interest rates on loans.

Experian also shared details about how these consumers manage credit, and it’s useful information. Here are the habits of people with perfect credit scores that are worth implementing in your own life.

1. They make the most of credit card perks

People with perfect credit have about two more credit cards than the typical consumer (an average of 5.8 cards for those with perfect credit, compared to 3.9 for consumers as a whole). But this isn’t because they need to borrow more money. They also have lower average credit card balances and use just 4% of their credit, on average.

Because they aren’t carrying large balances, they get to take advantage of the benefits credit cards offer without paying costly interest charges. And when you have a high credit score, you’re eligible for extremely valuable benefits. Here are a few examples of perks you can get from top credit cards:

Cash back or travel rewards on purchasesSign-up bonuses for new cardholdersComplimentary purchase protection and extended warranty coverageComplimentary travel insurance protections

For a real-life example, I use travel credit cards, and I save thousands every year with them. This summer, one of my cards saved me over $2,500 on a five-star hotel stay. If you want to save on travel, check out our curated list of the best travel rewards cards to find a card today.

2. They never miss a payment

There are many factors that go into your credit score, but the most significant is your payment history. When you pay credit cards and loans on time, it’s good for your credit. If you pay late, or if you have an account that goes to collections, it can do serious damage. Even making just one late payment can take over 100 points off your credit score.

Luckily, you have a margin for error. Payments can’t be reported as late on your credit file until they’ve been past due for at least 30 days. If you forget about your credit card payment, but you remember to pay it a week after the due date, that wouldn’t hurt your credit. If it was 30 days late, that’s when it would count against you on your credit history.

Consumers as a whole have an average of 1.5 accounts that have been reported as delinquent. People with perfect credit have zero. To protect your credit score, set up autopay or a monthly bill pay reminder so you never miss a payment.

3. They’re careful about their credit card spending

As I touched on earlier, people with perfect credit have much lower credit card balances than everyone else. Their average balance is $3,028, compared to $6,501 for consumers as a whole. They also have an average credit utilization of 4%, compared to an overall average of 29%.

Your credit utilization is your card balances divided by your credit limits. For example, if you have $1,000 in balances compared to $5,000 in credit limits, your credit utilization is 20%. The lower this number, the more it will help your credit score.

More importantly, smaller credit card balances don’t cost you nearly as much in interest. It’s also easier to pay off your credit cards when you avoid overspending with them.

The best strategy with credit cards is to pay them off in full every month. If you do that, you aren’t charged any interest on purchases, and you stay out of credit card debt. It’s a safe bet that many people with perfect credit follow that approach.

Building good habits with credit

It usually doesn’t hurt to learn from the best. In this case, these top habits of people with perfect credit are all well worth following. They can help you save money and build an excellent credit score.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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