Awhile back, I wrote about how it’s a bad idea to use a credit card as an emergency fund. I’m standing by that today, and even more so now that the credit crisis is in full swing. I will admit: I think credit cards are good to have, but only if you are responsible with your money.
Many banks nowadays are making it hard to get a credit card. Credit card companies are changing terms, interest rates, and fees. If you’ve got a credit card balance, you’re at their mercy. A few good credit cards I’ve come across are juniper credit card and www.credit-land.com, which some people find to be the best credit card offers. Check them out and see how they work for you!
Posted under Credit Cards
This post was written by Mrs Money on October 7, 2008
I make 100k per year, I’m a homeowner with equity and I also own 3 other properties with a good yield. Yesterday I was declined by my main bank, with whom I deposit well over £3k per month, and by another bank with whom I have banked with for 15 years. Credit Crunch indeed.
uncommonadvice- that is a GREAT salary. I know it is CRAZY to try to get a loan now. Sad!
Read Dave Ramsey’s Total Money Makeover and you’ll re-think your credit card as an emergency fund thoughts. You want to work towards no debt and 3-6 months expenses in your emergency fund. I just had a $750 car repair I had to take care of today and even though I didn’t like spending the money it felt great to have the cash on hand and just write a check.
Another thought, get your car paid off and commit to never having a car payment again! We haven’t had one in 10 years and love it! The car we just got fixed has 205K on it and will run for another 50k+
PizzaForADream- I think credit cards as an emergency fund are a bad idea. I just wanted to clarify.
I can’t wait to get this car paid off. That and a student loan and we’ll only have the mortgage!