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Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Need Personal Loan from my CU

Because I won't deplete my emergency fund. Plus when I said I have thousands, that doesn't mean it is all savings. I meant that have thousands flowing into 3 accounts there on a regular basis because I make a high salary. I also did not want to freeze up my everyday spend cards with that emergency either. My biggest financial rule is NEVER DEPLETE SAVINGS. It doesn't have to go zero either...it just has to be depleted in my eyes. I consider depleted at the thousand mark or so. So I never deplete emergency savings for an emergency. After an emergency, there still must be ample savings left. I just bought a house so savings is lower than it usually is and I am in the process of increasing it.

I started a new thread after I was approved for the Discover It. So I am able to take care of my emergency without depleting my emergency fund. So it's all good and Barclays is pending so I might get that card too.

I still plan to close my account at the CU and go elsewhere to another CU that supports their members.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Contributor
dddewdrop
Posts: 1,060
Registered: ‎02-06-2013
0

Re: Need Personal Loan from my CU

  If emergency savings isn't usable in an emergency, then what is it for?

0/10001100/13001346/16001699/2000Prepaid ,,Recent scores:FICO EX 632,EQ 635,TU 632...Link to my Rebuild Log
Frequent Contributor
WarJar101
Posts: 341
Registered: ‎08-14-2012
0

Re: Need Personal Loan from my CU


dddewdrop wrote:

  If emergency savings isn't usable in an emergency, then what is it for?


My thoughts exactly. Instead of taking out a loan and paying another person interest, when not pay yourself back over time and make some interest on your own money? If you command a high salary, it should be no sweat off your back.

Cap One Platinum MC $2.5k CL (08/12)
Citi Forward Student Visa Card $1.5k CL (09/12)
Express NEXT Card $0.25k CL (02/13), Jcrew CC $0.7k CL(02/13)
AMEX PRG NPSL (03/13), AMEX Gold Delta Skymiles 2k (03/13)
Walmart Credit Card $1.5k (03/13)
TU: 687 FICO (3/13) | EX: 692 Lender Pull (3/13) | EQ: 678 (4/1/13)
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Need Personal Loan from my CU

[ Edited ]
It is useable to a certain point. There will always be another emergency...big or small that I will have to take of. I will never live paycheck to paycheck again. That's one of the reasons i ended up in bankruptcy 8-10 years ago. If my savings is zero with money in my 401K, that's still living paycheck to paycheck because that money is not easily accessible and is primarily for retirement. I will never do it until it is my last, omega, el fin, final, resort. As long as I have savings, I have a guarantee I can pay all of my bills and not overshoot the budget for a birthday, Christmas, replacement items if they break, etc.

This rule has kept me very financially stable. When my car registration is due or I need new tires, I'm upset about it but I don't freak out like, OMG! What am I going to do?!?, because I ALWAYS have savings. For 8 years since BK, I have had ample money in savings for emergencies. And I pump up my reserves every week with $150, so that is $600 a month that I put in savings. Savings is the most important thing EVERYBODY can do financially. If an emergency comes up, you are still able to pay all of your bills on time.

Savings protects your credit rating! Never EVER live paycheck to paycheck as that is mistake #1. Fix that mistake, and you may never have a late payment again.

There are certain life circumstances that are very dire and can deplete your savings entirely and cause a late payment due to things out of your control such as job loss. But the more savings you have, the more control you have over these very negative events.

Having money is a tool to help you build credit as you use it to show you pay bills on time, are able to manage the flow of cash through credit cards responsibly, and have history of financial stability through your on time monthly payments over an extended period of time.

Again, never deplete your savings unless it is your final resort!
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Contributor
dddewdrop
Posts: 1,060
Registered: ‎02-06-2013
0

Re: Need Personal Loan from my CU

   I understand what you are saying and I think you are right. They say everyone should have an emergency fund and I completely identify with you  never wanting to live paycheck to paycheck ever again. I never thought I would either, then my wife got sick, but thats another story. Anyway I get what you are saying and you want to keep some money for lets call "really big emergencies" as opposed to this with is just a run of the mill emergency. Anyway good luck.

0/10001100/13001346/16001699/2000Prepaid ,,Recent scores:FICO EX 632,EQ 635,TU 632...Link to my Rebuild Log
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Need Personal Loan from my CU

+1000. Exactly. This is just an ordinary emergency not worth depleting my savings for. I would rather pay interest on the amount per month than have no savings and have to start back at square one. If something comes up before I've rebuilt my fort, I'm screwed! So I'm very happy I got the credit I needed and I wish the credit card industry would understand this philosophy a little bit better instead of snatching the umbrella when it pours as it may pour even harder and they'll end up getting wet too! I am sorry to hear about your wife's illness. I hope she is doing better now.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014

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