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A Double Fistful of Credit Cards

March 30th, 2014 at 04:28 am

I just counted and I have 26 active credit cards. Adding the card credit limits, I have a total of $319,900 in available revolving credit. But I pay off my balances every month and don't use credit cards to finance anything. So what is the point of having all those credit cards? Here are six reasons.

Credit cards give me financial flexibility. Like the time I bought a Subaru Forester with a credit card check because my own funds would not become liquid and available for a few days.

Credit cards give me bonus discounts on major purchases. Like the $135 I got last Fall as cashback rewards on a $9000 roofing job.

Credit cards give me a higher FICO credit score (currently 831, according to DiscoverCard). Because having more credit cards showing on-time payment records means getting a higher credit score. And because having higher aggregate available credit compared to your combined owed balances means getting an even higher credit score.

Credit cards give me an additional level of financial reserves.* So that all my reserves do not need to be in cash.* And that frees up more of my cash for investment.

Credit cards give me lower "street risk". Because having them means I carry just $50 in my wallet.

Credit cards give me a last resort "get-out-of-Dodge" option. Because with or without cash, having credit cards means I can go anywhere and do anything at a moment's notice.

Credit cards are not the enemy. Misusing credit cards is the enemy. And I reap a lot of benefits from having credit cards as my friends.

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*Making Over My Emergency Reserves Plan:
http://retired-to-win.savingadvice.com/2014/01/04/making-ove...

5 Responses to “A Double Fistful of Credit Cards”

  1. Mooshocker Says:

    ........and the hits just keep on coming....ANYONE ON THIS SITE WHO DOES NOT SEE THE UNBELIEVABLE VALUE OF RETIRED TO WIN'S BLOGS IS CRAZY!!!!!!! I have proud of my finanicial and frugal prowess over the past 10 years, but I am simply astounded at how engaging these blogs are. It's not that I have not thought of, implemented or even blogged about some of the very same points of interest...rather, it's simply thrilling to read the words of someone so thoughtout, passionate and rational about making life simple, stable and rewarding. Thanks again RTW!

    And PS - that Duplex Escrow account I wrote about yesterday, all of the "ducks" are in the "row" in preparation for a bank visit tomorrow morning before I head to the office. I have realligned my accounts, re-devised my operational, savings and escrow acount plans and feel really good about maintaining true figures for all three! Thanks again and as always for the inspirtaion!

  2. Mooshocker Says:

    Almost forgot......I have only one CC. It's a Chase Platinum Rewards. I have a %15k limit on it and have not carried a balance for about 15 years. The point is, I really have been out of the CC shopping market for a long time.

    Might you have any suggestions on some good quality CC's with a good rewards package? I have always thought of the power of plastic credit lines and adding them to my portfolio, however, as stated above, sometimes I just need that little extra inspiration and push....you did it. Any advise would be great!

  3. rob62521 Says:

    A friend of mine always said it made sense to use a credit card and use the company's money and then pay it off. You are correct, credit cards are not evil if you use them correctly.

  4. Retired To Win Says:

    Mooshocker,

    Once again, thank you so much for your kind comments.

    I am getting ready to try for a Chase Sapphire Preferred. If one spends $3000 in the first 3 months on the card, one gets a $400 bonus. Hey, hey!

    For a steady, good rewards card I would recommend a Bank of America Privileges MasterCard. It gives 2% on groceries, 3% on gas, 3% at WalMart, and 1% everywhere else. If you combine it with a BankAmerica checking account, your rewards get boosted by 50% as a checking account deposit at redemption time.

    (See my post titled "Leveraging Up CashBack Rewards" for more details.)

  5. Retired To Win Says:

    Rob,

    Thanks for the comment. I could not agree more.

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