No. of Recommendations: 2
Hi, welcome.

I think I can clarify what Tony was saying. Do not carry a balance, pay the bill in full every month. But if your card offers perks, use it. Charge everything you buy, including gas for the car and your groceries, and then pay it off in full so you aren't carrying a balance.

In terms of the safety net, he meant a temporary one, such as having your car break down somewhere. You need to pay the mechanic, you may need to rent a hotel room, buy food, etc. You can use your credit card, but again, pay it off in full every month. He didn't mean that your credit cards ARE your emergency funds, just that they can carry you through a temporary emergency until you get home. Then, if necessary, pull money from your emergency fund, pay the bill, then start putting money into savings again until you're back up to where you were.

unfortunately, interest rates for savings are a lot lower than they were.
Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.