considering credit card

[flowerseverywhere]

Can you get a card with a low limit? Say $1,000 - 2,000. Then only use it each month for say up to $50 worth of groceries or gas and be disciplined in paying it off. Don't let the bank or credit union raise the limit.

We have a low limit card for any internet transactions or to use at a gas pump. Works great. They tried to raise the limit on us the first few years (we would get a letter congratulating us) but we said no.

by the way, our credit union offers a 1.5% cash back card which we use to get occasional grocery or gas gift cards.

[Zoe Girl]

Yes i don't need a high limit, i just need to know that if i need to rent a car or go to the dr today i am okay, then i have the 25 days to get to my savings account instead of a very short time. You can actually have one without building up debt, rare but possible

[Tybee]

Yes i don't need a high limit, i just need to know that if i need to rent a car or go to the dr today i am okay, then i have the 25 days to get to my savings account instead of a very short time. You can actually have one without building up debt, rare but possible

Would a debit card give you the same sense of security with emergencies? Ally has a money market savings with checking that is paying .9% right now. It has a debit card with it. That is my emergency go to, since it comes out of my emergency fund.

Is the point that you want a credit card to make timely payments and rebuild credit? I guess I am not following why the credit card.

[Zoe Girl]

Well I don't see a credit card as something to avoid at all costs. At the time I had my bankruptcy I had a small credit card debt and a dental credit account with a couple hundred owed at 0% and the 2nd mortgage. I was paying the small debts and had a payment plan set up for the 2nd mortgage but then I did a BK instead on legal advice. I spent too much on one eating out in my early 20's and got over that fast! Haven't really had a problem to speak of.

For me it is much easier to make sure I pay a bill every month (such as the credit card) than to put money in emergency fund and keep it there. I will put off the emergency fund most every time, but I will pay that bill. I have had it happen before that once that emergency fund is breached it is all over, but I have always paid my bills (okay when it was $100K due to a recession I could not do that, I paid everything else).

[Tybee]

I'm not quite following, but that doesn't matter, if you have figured this out to your satisfaction. I'm lost about paying a bill versus saving the money since you already saved money in emergency fund, but I'm probably just being dense and not seeing what you mean.

[Zoe Girl]

Tybee, No, it is just a quirk of mine. I know my mental quirks well, and the emergency fund is mostly from a lump sum many years ago. I have enough issues with my own mental organization that I try to work with my quirks instead of fight them.