Credit Card Balances

[IQEQ]

Some off us believe and think that having a CC with a $10K plus limit is good.  Before, I write anything I would like to read how you guys feel about this.  I write this because I spoke with a colleague and he said to me his CCL was $20K and another friend said his was $25k... Note, these people can afford to pay this type of debit with no-problem...  yet I would like to know what does the average person think a safe limit is and why?

Your thoughts…

[Val215]

I don't know what a safe limit is, but if you can't afford to pay it....don't get it. I know some people with a small limit and raise it to the max and can't pay it.

[playhear]

A safe credit card limit is a zero balance at cycle end.

Credit card discussions are part of a broader concept of managing debt.  The primary thing to think about when managing debt is the interest rate of the individual debt relative to your other debts.  Typically, the rate on a credit card can be easily 5 times greater than any other investment/debt you may be involved in.  If you have a huge credit card debt, it doesn't matter how good your other investments are because you'll still be losing money.

Credit cards are useful for me for tracking my expenses.  However, I treat them kind of like debit cards and don't allow their balances to venture too far from zero.

By the way, here's a related thread:
http://www.learngospelmusic.com/forums/index.php/topic,28705.0.html

[PianoWizard]

I don't know what a safe limit is, but if you can't afford to pay it....don't get it. I know some people with a small limit and raise it to the max and can't pay it.

I'll have to agree with you there.

PianoWiz...

[jonesl78]

For me a safe credit card limit would be 5k.

[4hisglory]

A safe credit card limit is "$0"

[ReddGirl]

I do not own a credit card. So safe for me is "0". Credit cards are easy crutches and unless the user is disciplined enough to pay it off by end of the month then no limit is safe.

[csedwards2]

As much as you can be disciplined with.

If somebody gave me  a card with a 100k limit, it'd still be on a shelf.

[temejo1]

Anytime someone gets a card with that kind of limit has excellent credit.  The best thing to do is keep it that way by shredding the paperwork to accept that card!

[fretai03]

Well, as of recently my new cc limit is $0 & it's going to stay that way for a veeeeeeeerrrrrrrrryyyy long time.

[IQEQ]

OK... For those of you that travel a lot--what is a safe CCL?  I understand the 0 Balance... but the question for the traveling folks what is a safe limit?

[fretai03]

hmmmm, I guess it depends on where you live & travel to/from...

In my case I'd say it's common to have a travelling CCL limit of $2k to 5k. That's based on the fact that we're so far
away from anywhere that we have to "pay an arm & a leg" just to get somewhere... Most friends & family I know travel with cards of that amount. Its just the way it is really.

[playhear]

OK... For those of you that travel a lot--what is a safe CCL?  I understand the 0 Balance... but the question for the traveling folks what is a safe limit?

When I go on traveling stretches, I can still pay my credit card from anywhere in the world.  All I need is a computer with an Internet connection.  I log onto my bank's website and pay my bills, including my credit card.  So, I can still use my credit card yet keep the balance at zero.  I don't play around with card balances, been there, not going back.


****BEGIN EDIT****

I set the credit limit at $4,500, even though my bank wants to set it quite a bit higher.  When I'm traveling, the balance has never ventured much higher than $1,000.  Thus, $4,500 seems safe.

****END EDIT****

[IQEQ]

This is good information...  Anyone else

[jonesl78]

Are we talking about the Balance or the Limit? These are two totally different things. 

[csedwards2]

he said "CCL", so that'd be limit.

I dont travel with 10k+ cards (they're up on the shelf, waiting on the arrival of that 100k card to keep her company, lol), but I keep my 4k limit card close by with a 0 balance. Im usually only gone for a few days,so even this is probably overkill, but its next to the smallest card I have but with half the APR, so thats why its my road dog.

[cas10a]

OK... For those of you that travel a lot--what is a safe CCL?  I understand the 0 Balance... but the question for the traveling folks what is a safe limit?

I travel all the time, "job related", and a credit card does come in handy and is needed at some locations & times.  The limit should be based on your income.  I beilieve you should be able to pay the max on the CC out of 1 or 2 paychecks.  If you don't have the money in the bank or you are not sure if the money will be available to you within 30 days, don't use the CC.  I rarely use my Credit Cards, but as I said they are a must sometimes.  I would say 5K is plenty in most cases, although I have a little more than this, because 1 of my CCs is Government Travel Card (GTC) a must on TDY's.  I really prefer not to use the Government Card, because of strict rules, so I usually use my own when traveling.