Rainy Day funds and the Credit card

[Andrew68]

I carry two credit cards, one being a backup (like HarmonicaBruce).  My primary card pays cash back on everything and I use it for almost everything; I hardly ever use cash.  Both cards are set up to automatically pay the balance when due, so I am never paying interest on that debt.  I like the protections that a credit card gives, as opposed to debit cards and cash.

All bills are set up for electronic fund transfers from my checking account (where my SS check is automatically deposited).  I track my spending and have a budget.  I use the minimum balance (to avoid fees) in my checking account for an emergency fund.

Credit cards are great only if you are disciplined.  Interest rates on credit cards are crippling.

Thank you for your posting and I am feeling more confidant after reading your reply. I am not going to just close them out, need to stay prepared and not just use up a rainy day account with no protection.
While researching i have found that my Visa card and provider protect me with auto repair warranties as well. Cash doesn't when your 500 miles away.
Again thank you

 

[Optimistic Paranoid]

Andrew68, I would use the cards for everything I would have to buy whether I had a card or not.  Buy your fuel with it, buy your groceries with it, pay for your cell phone with it.  If you're staying in a campground, try to use your card to pay for that. 

Just make sure you can pay it in full every month.  Sign up for online acess with your card company and monitor your account at LEAST weekly to see how much you've charged to it.

Regards
John

 

[Almost There]

Next question:
We all know you can not carry a zero balance on the high limit amount with out using/exercising it, should I use it for a fuel and maint to keep something charging on it to maintain my balance.  I know from experience I can not carry a card for 6 months with a zero balance they will reduce the limits with out telling you, what do you do to maintain your limits?

I have learned over the years you have to allow the balance to post prior to full payment to maintain a healthy relationship with the CC provider.

Thoughts/musing's?

My main credit card is a standard issue from a large banking organization, my back up emergency card is from my credit union. I've never had a problem with the credit union one trying to reduce my limits because I don't use it but maybe it's because I'm dealing with a smaller more customer friendly organization.

If nothing else, every couple of months use the reserve credit card just to put a balance on it and then pay if off before it's due.

The other thing that no one has mentioned is notifying your credit card company that you'll be travelling. I learned my lesson the hard way when I went to Florida. I had paid cash for gas all the way down because the credit cards charge more for currency exchange than my bank did. When it got near the end of my trip and I was conserving cash, I used my c/c at a store and then went around the corner to fill up with gas. First transaction went through okay, second wouldn't - I had to break out my reserve card and then phone the c/c co., go through a bunch of rigmarole to get the card freed up again. They had flagged it because the first transaction was so far from home!

I can go online with my c/c co. and notify them of my travel plans!! Who knew?

 

[LeeRevell]

Having had a couple credit card fraud/stolen problems before, I check my CC info almost daily. Certainly before I make any sizeable buys.

 

[ZoNiE]

...

You know, there is a spaceman spiff on the rocketry forum...Uses the same avatar. You?

My main credit card is a standard issue from a large banking organization, my back up emergency card is from my credit union. I've never had a problem with the credit union one trying to reduce my limits because I don't use it but maybe it's because I'm dealing with a smaller more customer friendly organization.

If nothing else, every couple of months use the reserve credit card just to put a balance on it and then pay if off before it's due.

The other thing that no one has mentioned is notifying your credit card company that you'll be travelling. I learned my lesson the hard way when I went to Florida. I had paid cash for gas all the way down because the credit cards charge more for currency exchange than my bank did. When it got near the end of my trip and I was conserving cash, I used my c/c at a store and then went around the corner to fill up with gas. First transaction went through okay, second wouldn't - I had to break out my reserve card and then phone the c/c co., go through a bunch of rigmarole to get the card freed up again. They had flagged it because the first transaction was so far from home!

I can go online with my c/c co. and notify them of my travel plans!! Who knew?

Currency exchange? Like from Texas Dollars to Florida Dollars?    I Presume Canadian Dollars to US?

 

[Almost There]

Currency exchange? Like from Texas Dollars to Florida Dollars?    I Presume Canadian Dollars to US?

Guilty as charged..

 

[gcal]

Re credit cards vs. debit cards, try not to use your debit cards with merchants and restaurants. Don't give strangers your bank card info if you can help it. You may get your money back in your bank account --- after you have jumped thru all the hoops to claim that your money was taken fraudulently --- but that could still leave you without funds for days. With a credit card, you can jump thru the hoops while the money to pay your phone bill and buy your groceries is still on the bank.

 

[gcal]

Also, keep your rainy day funds in a separate savings acct that is not connected to your debit card. That way, someone who gets your debit card can't take those funds, too.

 

[Spaceman Spiff]

The other thing that no one has mentioned is notifying your credit card company that you'll be travelling. I learned my lesson the hard way when I went to Florida. I had paid cash for gas all the way down because the credit cards charge more for currency exchange than my bank did.

Good point.  I let my CC company know when I am going to be out of my normal routine, like traveling to another area.

Almost There: it has been a while since I have been to your fair country (Glacier & Revelstoke for mountaineering in 2008), but if I remember correctly, I did not incur a fee for charging in $Canadian and paying the bill in $US (I got whatever the exchange rate was at time of posting).

You know, there is a spaceman spiff on the rocketry forum...Uses the same avatar. You?

Nope.  Had this avatar for a while, probably should update.

-- Spiff

 

[ZoNiE]

Good point.  I let my CC company know when I am going to be out of my normal routine, like traveling to another area.

Almost There: it has been a while since I have been to your fair country (Glacier & Revelstoke for mountaineering in 2008), but if I remember correctly, I did not incur a fee for charging in $Canadian and paying the bill in $US (I got whatever the exchange rate was at time of posting).


Nope.  Had this avatar for a while, probably should update.

-- Spiff

Well, it probably makes the most sense to use that Gif as an Avatar...

On CC vs Debit. Yes, Definately, use the CC. You have protection. if they get you debit info, you don't have as much and it takes time to get the money back if at all. with a CC, they just remove the charges while they investigate. Sort of a line of defense.

AMEX is probably the best for people who pay their bill off monthly, and you get FF miles, too, that can be used for many other things.

 

[GotSmart]

I had to tell all my banks I was traveling.  One bank canceled my card after a deposit was made in Missouri, and the same day I tried to use the card in AZ.  I had to go online and transfer the money to my USAA account in Texas so I could have access to it. I have three cards I use.  Paypal, (use it anywhere anytime) and two bank debit cards.  For some reason when LEO sees the USAA card, (I keep it over my DL.) they cut things short and move along.  

That reminds me, I need a haircut 

 

[Almost There]

Almost There: it has been a while since I have been to your fair country (Glacier & Revelstoke for mountaineering in 2008), but if I remember correctly, I did not incur a fee for charging in $Canadian and paying the bill in $US (I got whatever the exchange rate was at time of posting).

It's not a fee for exchanging currency. What I've noticed by watching the currency exchange rates posted by my two banks and by the credit card company is that they each charge different rates.

My credit union is consistently a half cent to a penny cheaper than the other bank and the credit card company can be up to 3 cents on the dollar more expensive than either of them.

The credit card company also charges their exchange based on the date of posting to your account, not the date of purchase so you can never really be sure what the charge is going to be.

Oh and that rate that is posted each morning on the news program isn't anywhere near what the bank is going to charge - right now Bank of Canada (which is our treasury) shows 1.2433, my credit union is 1.2754, major bank 1.2816.

When you're only changing a few dollars it doesn't matter much but when you're living for six months on another currency it can sure add up fast.

 

[Brian_and_Jesse]

Yeup!

We have credit cards, one that we use regularly for everything that is (or will be) tax deductible, and for us that's almost everything when we're on the road.

We pay it off in full at the end of each month.

Debts make me crazy!

Shabbat Shalom,


Jesse.