<prompt> Human: Its become clear as I spend time on this sub that an emergency fund is quite valuable. Does anyone here use or have thoughts on using their credit limit as an emergency fund, or as part of it? If you only utilise about 30 of your credit limit, having that constitute a portion of your emergency fund seems like it would free up money for other things, namely investing. If an actual emergency were to occur, you could pull investing funds and use the credit limit to smooth over the transaction delay. I havent seen this suggested before, is there some reasoning against it?  <response>: Emergency Fund is not the same as emergency liquidity reserve. Use your credit card as emergency liquidity. But when the statement is due, how are you going to pay it? Are you going to take from the bonds that have lost 4-5 value due to rising interest rates or global panic? Bonds markets have crashed before. Or are you going to eat the 15 interest rate? This defeats the 3 bond interest rate in 15 of the time.Markets can remain irrational longer than you can remain liquid. 