How many Credit Cards do you have? What is your total credit limit? (pay off, amex)

[Old Man Winter]

Using credit cards as a "cash bank" seems as frightening as using your home for one. Isn't that why the housing market is party in the state it's in over ? Hmmm I need a 60" flatscreen that costs $12,000, no worries lets float a home equity loan. Ok honey you want to remodel again ? Why not lets float a home equity loan.... etc, etc, etc. Ok honey I think we are in trouble our ARM just reset and the mortgage went up 785.00 a month..... No matter we have $145,000 in available credit we will be fine with that much cash available !!! LMAO that is insane and I for the life of me cannot understand that logic. I have no credit cards, my wife carries 1 visa in case of emergencies and she has a best buy card for small purchases so we can pay over 6 months with no interest. I will let the rest of America run on credit if that's how people live, for us we will continue to keep our money in the bank and pay cash for what we need

[Fuzz]

^^^ Spot on, OMW. It's funny how some people seem to think that having a credit card/limit means not being broke. Having no money so that you have to borrow to live is pretty much the definition of broke!

We never carry a balance on our 2 credit cards -- we keep them in case of emergencies (for instance, one time when we were traveling, my debit card strip stopped working).

[azloafer]

I only have one credit card and I never keep a balance, I always pay the balance in full. My reason for posting is that I have a card that has a really great feature. It is called virtual numbers. The way it works is like this: I shop online for various things and I was always afraid that my credit card number would be stolen and used by someone else. I got a CITICARD Mastercard and it has this virtual number feature that is used right from the computer desktop. Let's say I am buying a book from Amazon...I fill in the forms and then when I get to the area that asks for the credit card info, the credit card program automatically brings up the sign-in form to the window. You fill in your sign-in info and click on "generate virtual number" and the form gives a number, expiration date and three digit code, JUST GOOD FOR ONE USE! Once this number is used it cannot be used again by anyone. I have had this card for about two years and I think it is the card to have just because of this feature. I live in Arizona and we have the highest identity theft rate in the nation. This card protects me. That's why I wanted to pass this info on. I have told so many friends about it and none of them had ever heard about it. Now they feel safer just as I do. This is one great feature for online purchases!

[4StanleyCups]

I have 4 credit cards:

An American Express (no-annual-fee) card that I use all the time except at merchants who don't take Amex.

A MasterCard that I also carry just for use at any merchant who doesn't take Amex.

A different Amex card that I use for online purchases and nothing else.

A different Mastercard that I use only for eBay and PayPal and nothing else.

I used to have a few "store" cards but closed them out a few years ago because I'd rather use the Amex for all my in-person purchases (their rewards program includes gift certificates to Amazon.com which I use constantly).

I never carry a balance, I pay each card in full every month.

[4StanleyCups]

Originally Posted by azloafer

I got a CITICARD Mastercard and it has this virtual number feature that is used right from the computer desktop. Let's say I am buying a book from Amazon...I fill in the forms and then when I get to the area that asks for the credit card info, the credit card program automatically brings up the sign-in form to the window. You fill in your sign-in info and click on "generate virtual number" and the form gives a number, expiration date and three digit code

That sounds interesting. Did the card require that you install any kind of software on your computer in order to use it (the card)? It sounds as though it might....

[azloafer]

Originally Posted by 4StanleyCups

That sounds interesting. Did the card require that you install any kind of software on your computer in order to use it (the card)? It sounds as though it might....

Once you have the card and sign up for their web site you can download the software directly from their site. You can also pay your card between statements by going to the site or check on pruchases, etc. I really think that the virtual number feature is great because you hear so much about stolen credit card numbers.

[Racelady88]

I have one Visa with a $3000 limit and a $0 balance.

I have a Home Depot card with a $2000 limit and a $0 balance.

I have not made a credit purchase in the last 22 months.

[LittleMissSunshine]

I have one Capital One with $20,000 limit, but I never have had more than $1,000 on it. And I have the Bebe store card because I am a Bebe addict.

[riveree]

Originally Posted by Old Man Winter

Using credit cards as a "cash bank" seems as frightening as using your home for one. Isn't that why the housing market is party in the state it's in over ? Hmmm I need a 60" flatscreen that costs $12,000, no worries lets float a home equity loan.

You're right, that is not a prudent way to use your home equity.

But there IS a smart way to use your home equity, and that is to have a Home Equity Line Of Credit on tap BEFORE you lose your job.

A Home Equity Line Of Credit (a HELOC) is NOT a loan - these are two different things. A HELOC is 'equity on tap....just in case'. Sure, you can use it to buy a flat screen, but that's not what I was suggesting.

If you set up an interest-only HELOC on your home while you still have your job (because you generally can't do it once you lose your job), you have the peace of mind that your equity is on tap - no questions asked - "just in case".

Let's say you lose your job and things are bad. You intend to sell your home to cash in on your equity (things are THAT bad....it happens). But in the meantime, you need to continue paying the mortgage, maybe make a few small repairs, just get through until you can sell. Unless you have family willing to loan you a large sum, few things can replace the value of a HELOC on tap.

Most financial advisors worth their salt will recommend for you to set up an interest-only HELOC while times are good as an insurance against when times are bad. You don't tap it until that rainy day comes and then you'll be glad you had one .

[cricket_factor]

One credit card with a $6500 limit and a $200 balance. I don't need or want any more.