Do you include room left on your credit card as money left for the month for your budget?

Of course not. I do not consider “available credit” as available money.

@SnipSnip Thanks. I was wondering who else does? I did before I learned my lesson.

Quick way to MAX OUT card !

Pay down your balance instead.

We buy 97% with credit card. We pay off our credit card twice a week. All the spending, none of the interest.

I have never carried a balance on my credit card. I pay it off every month. I can charge up to $10K.

I can’t wait to get a credit card, then maybe I can get some credit.

I try not to, but I have been in a place where I’ve had to do that before.

Absolutely not. I don’t even know the limits on my credit cards.

I don’t have a credit card. I don’t know if I could get one since I’m retired. I was under the impression that one had to have a job to get a credit card. Wrong?

@smudges You’re retired and don’t have a credit card? Have you ever had a credit card? Of course you can get one if you have good credit and an income. Are you in the US?

^^ Yes, I’m in the US. I had a few credit cards back in the 90’s, but ex and I made the decision to only have one, and it was for emergencies only. I had an inheritance, so when I divorced him and moved out of state, I didn’t get a job for a while. My income probably isn’t enough for them to approve me. Tbh I haven’t even applied for years because I assumed I wouldn’t be approved. I have some bad credit, not a lot, and I’ve heard that they (the proverbial ‘they’) don’t count medical bills.

@smudges I retired in 2015. In 2017 I used my credit card help pay for a new Ford F150 pickup truck. I get 2% back on my purchase. At first the Ford dealer said that they wouldn’t accept my credit card. I said, “Oh that’s too bad. I’ll have to leave and come back in a few days after I’ve liquidated some stocks”. Then after they quickly checked up on me and accepted my credit card. HA!

I only have one credit card and use it all the time. So convenient.

@smudges If your credit score is 700 or higher it shouldn’t be any problem getting a credit card. They might start you at a low limit, but so what. The credit card will increase your credit score if you rarely use it. You will have more open credit. Over time the credit card company will raise your limit if you don’t use it much and always pay on time in full.

I can’t imagine not having a credit card. Especially now that interest rates on savings accounts are going up. Hold your money longer and make some money on your money. Might just be $10 a month, but everything counts. If you have a cash back card you can add that money too.

Always pay credit card balances in full so you don’t incur any interest or penalties.

A credit card should never be part of your budget per Dave Ramsey. It’s not your money, its a loan.

@KNOWITALL I have been a no debt minded person before there was a “Dave Ramsay” and I always used credit cards for everything since my early 20’s.

Holding onto your money longer and getting a percentage cash back will give you more money.

Dave Ramsay is focusing on an audience that thinks debt is normal, and who are accustomed to thinking in terms of monthly payments and not how much things really cost them. His assumptions are a lot of people will overspend, and also that people don’t really do the math when they pay annual fees for credit cards that lure you in with points or other benefits. Plus, he knows people function under a lot of destructive myths about credit scores. He’s not wrong, but for people who can evaluate the math, know what really affects credit scores, and do always pay their balance in full, those people are financially ahead using the cards.

If we got rid of credit cards altogether the population as a whole would benefit, because in the end the credit card companies are making money, which means it costs the public money. Credit cards aren’t going away so since they are here to stay in very wide use in the US the people who use the benefits to their advantage are ahead of the game.

I can understand why some people feel it’s just easier to only use “cash” and not worry about making a few dollars here and there though. I do that in little ways, like not opening a credit card every time I can get 20% off in a department store for opening a new card. I don’t want to keep track of another card or worry about cancelling it.

I ALWAYS fully pay off my credit card at the end of the month. I am pathological about not liking to be in debt. I paid off my house loan by paying WELL above the min payments to get it off the books ASAP.

The thing is, I don’t really need a credit card and it would be too easy to overdo. I bought my 2015 Hybrid Camry (35,000) with cash and don’t plan on buying another car until it gives out. I’m guessing that my credit score is below 700. But for any big purchases (over $800) I sell stocks. I’m sure there are times when one would be good to have, but I’m ok without one.

All credit cards are paid off. I don’t like having balances on them.

Actually, the inverse of that. I consider my monthly bills not to be paid unless the credit card has a zero balance.