As a financial planner,  I am frequently asked about credit cards, and what someone should do with credit cards that they no longer use.  After running across this topic on a credit card forum, I decided it was time for a post.

People will debate about the reasons to keep credit cards open, including using them for emergency spending, instead of or in cases of no emergency funds as part of a holistic cash reserve strategy.  Credits cards are not emergency funds. 100% correct.  However credit cards MAY be the solution for the large part of America that does not have enough in savings.  Let’s examine how credit cards and other credit products may fit as part of a holistic cash reserve strategy.