The value of Credit Cards

[DI]

Does anyone consider their credit cards as being money in the bank?  Is having  high credit limits like having a lot of money to you?   Or is it just plastic that may or may not work?

[Anonymous]

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@DI wrote:

Does anyone consider their credit cards as being money in the bank?  Is having  high credit limits like having a lot of money to you?   Or is it just plastic that may or may not work?

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Plastic that may or may not work.

IMO, a credit card is just a tool to spend money that I already have available to spend in my checking account.  The only reason to use a credit card over a Visa debit card is the security and consumer protections offered by using the former.

[OnTheRebound]

No. Dangerous to consider credit cards this way.

No. Ditto

Yes. I consider credit cards a tool I use to our advantage (cash back, 0% promos). We only spend what we can PIF.

[DI]

During the housing crisis,economic downturn and job loss many turned to their credit cards to stay afloat.  It seems some use their cards for emergencies.  To me, I think those people look at their cardsas being money and an extention to their lack of income. 

[Anonymous]

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@DI wrote:

During the housing crisis,economic downturn and job loss many turned to their credit cards to stay afloat.  It seems some use their cards for emergencies.  To me, I think those people look at their cardsas being money and an extention to their lack of income. 

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I think many -- if not most -- people look at credit cards that way.

You would be shocked at how many do not even have a one-month emergency fund not to mention a 3 or 6-month one.

[OnTheRebound]

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@DI wrote:

During the housing crisis,economic downturn and job loss many turned to their credit cards to stay afloat.  It seems some use their cards for emergencies.  To me, I think those people look at their cardsas being money and an extention to their lack of income. 

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Yes, thats sad. It's money that has to be paid back at a high interest cost.

[DI]

D

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@OnTheRebound wrote:

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@DI wrote:

During the housing crisis,economic downturn and job loss many turned to their credit cards to stay afloat.  It seems some use their cards for emergencies.  To me, I think those people look at their cardsas being money and an extention to their lack of income. 

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Yes, thats sad. It's money that has to be paid back at a high interest cost.

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Do you think the easiness of being able to file BK, before congress took actions, contributed to the mind set people have about credit cards. 

[Imhotrodcrazy]

IMO, people who do not have 6 months in reserves are treading on dangerous grounds financially.   You should have your "reserves" saved before applying for, or using credit cards. 

[tray]

the value of credit cards to me is to help generate a credit score and to show how you personally handle the use of available credit to assist in obtaining high luxury items such as a home mortgage.  No one should feel the limit of available credit on credit cards is the extension of free money as this is not the case as you just have to pay it back eventually and hopefully not with INTEREST.

[OnTheRebound]

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@DI wrote:

D

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@OnTheRebound wrote:

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@DI wrote:

During the housing crisis,economic downturn and job loss many turned to their credit cards to stay afloat.  It seems some use their cards for emergencies.  To me, I think those people look at their cardsas being money and an extention to their lack of income. 

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Yes, thats sad. It's money that has to be paid back at a high interest cost.

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Do you think the easiness of being able to file BK, before congress took actions, contributed to the mind set people have about credit cards. 

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I'm sure the were (and still are) a good number of people who had/have the attitude of buy now, pay later and spend, spend, spend and and if worst came to worst they could just wipe out the debt via BK.

I personally know of two individuals who always had nice cars, trucks and expensive toys by the way of credit cards and using their homes as ATM's. One lost everything. Fortunately, for the other his dad was willing and able to bail him out.