The temptation of easy credit

This is one of those "do as I say, not as I do" type of posts. As I posted earlier, I love having higher lines of credit, especially when I get instant approval for them. I've thought more about it since I wrote that post, and here's the conclusion I've come to:

There's a strong temptation to have an ever-growing total of available credit. My total available credit is about $13,000 right now, which isn't terribly huge, but I still have the temptation to increase it even further, and I probably will do so in the future. It always gives me a heady rush of pride, knowing that they "trust" me with that much credit. The only reason I would feel safe in doing so, and maybe it smacks of hubris, is that I have never carried a balance on any of my credit cards, and don't plan to do so. Over time, I have developed the discipline not to misuse my credit (knock on wood).

Discipline is absolutely required when it comes to credit. That temptation to acquire more credit is like asking the credit card company to give you just enough rope to hang yourself. However, discipline requires organization to make it work. That's where the budget comes in.

Make sure you have a budget that works for you. Make sure that you have a cushion in your bank account, an amount large enough so that you'll never bounce a check or have to delay paying your credit card bills. I've been close to the edge a couple times, and I made a promise to myself that I'd never do that again. I got a budget, got used to it, and used it religiously. Try it. I promise that you'll see similar benefits.