Michigan: Here’s Why It’s a Bad Idea to Buy Lottery Tickets on a Credit Card

We all dream of what we would do with our fortune if we snagged a winning lottery ticket. But did you know it's a bad idea to buy those tickets using a credit card?

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Record-Breaking Powerball Jackpots

The Powerball jackpot for Wednesday's (10/11) drawing climbed to north of $1.7 billion to become the second-largest jackpot in Powerball history. In fact, this was the first time in the history of the multi-state drawing that back-to-back Powerbgall runs produced jackpots that were more than $1 billion.

By the way, there was just one ticket for Wednesday's drawing that matched all the numbers, making one person a billionaire. That ticket was sold in California.

There were no million-dollar winners here in Michigan, but there were a few in Florida, New York, Oklahoma, California, and Virginia. Those players matched five winning numbers while two additional players in Arizona and Pennsylvania added the Power Play option to snag $2 million.

Using a Credit Card Could Cost You More

While it may be tempting - and certainly convenient - to whip out a credit card when you're purchasing those potential winners, doing so could cost you.

When you buy a lottery ticket with a credit card, the purchase is likely to be processed as a cash advance. Depending on your credit card issuer's terms, cash advance transactions may result in high fees and won't count toward your card's reward program.

According to CNBC Select, many credit card companies treat lottery ticket purchases as cash-equivalent transactions.

For example, here's an excerpt from Capital One's website:

"Money transfers, gambling and quasi-cash transactions” such as lottery tickets or gaming chips may also be classified as cash advances by your credit card issuer."

CNBC also cautions that some debit cards work like credit cards and says that it's best to use cash when purchasing lottery tickets.