is it stupid to apply for credit cards but not use them as much but only having them for emergencies? im about to go on 6 but only 3 have balances but im going to have the others as back ups/
2007-02-08 11:38:58 · 7 answers · asked by nycgreekguy004 1 in Business & Finance ➔ Credit
good asnwer...im still going to open one up.i have money on the side foir emergencies but its always smart to have 3-4 back ups which i have already.
2007-02-08 12:30:45 · update #1
It's not stupid. I have credit cards also that I don't use except for emergencies. However, opening too much accounts (especially in a small frame of time) can lower your credit rating. Your credit rating is very important throughout your life.
2007-02-08 11:47:12 · answer #1 · answered by Neji Hyuga 2 · 2⤊ 0⤋
Yes. You need 3-6 months of cash for emergencies not a credit card. the last thing you need in a true financial emergency is a payment. You need no payments. I suggest, get rid of all your credit cards, pay them all off and build up to a 6 month emergency fund. While paying off the credit cards put $1000 in the bank for true emergencies (car break downs, furnace goes out, etc).
I highly suggest you read The Total Money Makeover by Ramsey. I wish I would have had that advice 10 years ago!!
2007-02-08 20:27:10 · answer #2 · answered by mldjay 5 · 1⤊ 0⤋
I got a credit card with no intentions of using it (only for emergency) but then had an emergency- so now I am stuck paying it back. It was nice to have, but since I had it, i used it.
So i guess it is up to you. If you can handle another and use it JUST for emergencies, then I say go for it.
But I have lack of experience- so dont just base your action off my answer . . .
2007-02-08 19:48:27 · answer #3 · answered by ? 3 · 0⤊ 0⤋
I'm a Dave Ramsey fan but believe it or not you need at least 1-2 revolving credit card to help your FICO score. Once you purchase a home (or become rich) you can cut it up, but until then the FICO scoring model takes into account how many revolving accounts you have and their balances. Keep them low (or even better zero) and that will help your credit.
2007-02-09 10:04:24 · answer #4 · answered by Kevin K 3 · 0⤊ 0⤋
Open credit cards with no balance still reduce your credit score. I think it helps to reduce the max on them also. It's kind of entertaining trying to get the CC company to understand that I don't want their credit. I want only a 1000 limit, but they insist that I need more.
2007-02-08 19:51:44 · answer #5 · answered by kana121569 6 · 0⤊ 0⤋
use them as u need too
2007-02-08 20:20:47 · answer #6 · answered by matt12882003 3 · 0⤊ 0⤋
mr .chunhak was right
2007-02-08 19:51:06 · answer #7 · answered by girish4music 4 · 2⤊ 0⤋