Sunday, January 11, 2009

Credit Cards

The strangest thing happened this week. One of my credit cards increased my limit. Go figure. I thought the credit card industry was lowering everyone's limits. But of course there is a catch, they raised my interest rate by 4%. I guess they figured I would be so impressed by the higher limit that I would not look ant the interest breakdown.

I could look at this two ways.

1. The increased limit lowers my debt-to-credit ratio, therefore improving my credit score (ever so slightly)


2. The increase in the interest will cost me $6 per month, therefore it will take me longer to pay off the card

While I am on the subject of credit cards I wanted to know.....

What items do you refuse to put on a credit card?

The rule I follow is a rule my mother taught me a long time ago

"Don't charge anything that will be gone by the time the bill comes"

Therefore my answers are

1. Gas
2. Food
3. Clothes
4. Bills (Cell Phone, Cable, etc.)
5. Travel

What did I charge?

1. Car Repairs
2. Medical Expenses
3. Text Books (From College)
4. Lap Top (Is that one word or two?)
5. Vet Bills (My cats are my children)

I ask again

What items do you refuse to put on a credit card?


  1. I have always put my online purchases on the credit card. The only other things I put on there are large purchases $1000 or more.

    Although, I once the card is paid off I will only use it for online purchases.

  2. Way back when I was in credit card hell, I wouldn't put anything at all on a credit card because I desperately wanted to be out from under them.

    Nowadays I just try to keep the charges to a minimum so I don't have to stretch too hard to pay when the bill comes. I'm getting better.

    I think that if you can't pay in full, then you shouldn't charge items such as gas or meals out as your mother wisely suggested.

  3. Anything like credit card payments from other cards, rent...

    Other than that, I'm pretty open to using cards.

    Fabulously Broke in the City

    "Just a girl trying to find a balance between being a Shopaholic and a Saver."

  4. Hi There! I'm new to the blogosphere but loving your site :)

    Currently I put NOTHING on my credit cards (I find that once I start, I cannot stop).

    When I become DF, I will put all of my monthly bills on them, since I get some great reward points for spending money. So, only pay for things that I know I can pay off in one month.

    I'm also planning on saving up and then putting my vacation on my good reward card, since I can get cold hard cash back as a reward!