Do You Keep Your Credit Cards in Your Wallet/Purse?

A common piece of personal-finance advice is to remove your credit cards from your wallet or purse. While you may not need to go as far as to literally freeze your credit cards in ice, removing your credit cards from your wallet or purse can prevent you from succumbing to the temptation of purchasing on credit.

A good use of credit (insofar as there are any good uses of credit) is to get you through a personal financial emergency. While an emergency fund is the best way to get you through a financial emergency, reserving your credit card use for times of emergency is also very wise. Therefore, if you are relatively immune to spending temptation (that is, if you have retrained your spending habits and are able to live within your means), then it may be a good idea to leave yourself a single major credit card (Visa, Mastercard, Discover, or American Express), in case of emergency.

Even if you decide to keep a major credit card in your wallet or purse, you should probably avoid carrying your high-interest store credit cards around with you. Store credit cards can be a good way to obtain special promotions, such as a no-interest, same-as-cash promotion. However, a retail credit card for your favorite retailer can be especially tempting to use, and the high interest rate can make it very difficult to pay off a retail credit card. Do yourself a favor and keep your retail credit cards at home.

How many credit cards do you carry in your purse or wallet? Which type of credit cards, and why? If you carry them with you, how do you avoid the temptation to use them? Share your own advice in the comments section below.