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Credit cards are useful in a set of unexpected conditions that most of us face at least once in our lives. The credit line can be necessary if you are facing an emergency repair bill or sudden expenses. Although we recommend Create an emergency box To help when unplanned expenses appear, credit card can help you bridge the gap between the payment days if you cannot. However, it does not provide a long -term solution.
If you move to a credit card for financial assistance, some credit cards are offered Introduction 0 % April For a limited time. This can give you some breathing room of interest fees. If you are on the market to get a credit card on hand in the event of an emergency, here are some.
Read more: We classified the safest (and most dangerous) ways to get quick money
How to choose an emergency credit card
Finding the appropriate credit card to use in the event of an emergency may be difficult, especially if you have incomplete credit or you have just started Credit building For the first time. Also consider any fees, as well as reward programs and card holders.
This is what to know:
- Civil requirementsMake sure you have a general idea of Credit. This worker will determine qualified credit cards. You may have to start with The guaranteed credit card If you do not have a credit history at all.
- The percentage of the annual percentage of the card, or April:If your card is high April And you are unable to pay the balance immediately, you will have to deal with expensive interest fees. Any balance that is not paid will be achieved every month that remains unpaid.
- Annual feesTry to find an emergency credit card Do not impose annual fees. Also search for other fees such as the interest rates in the penalty, the late fees and the return fees that have been returned.
- Reward rates: Some credit cards for emergency cases provide rewards for spending, which can help you restore something for every dollar. Even there are credit cards that have a file Welcome You can earn if you meet the minimum spending requirements within a few months of opening the account. Just avoid increasing spending in order to reach it.
Pros and negatives to use an emergency credit card
The presence of a way to pay emergency expenses is always good. After all, access to emergency funds can help you avoid knees on bills and face later fees. But there are some negative aspects as well.
✅PROS:
- There are emergency credit cards if you need to reach a credit line
- You can control the amount of borrowing simultaneously
- You can earn bonuses for some of your purchases
- Some cards contain 0 % presented offers that help you avoid interest fees for some time
❌Cons:
- Credit cards make it easy to increase spending
- Some credit cards require higher credit grades
- High interest rates, which can lead to expensive interest fees
- Late payments and high debt levels can harm your credit degree
What are the best types of credit cards for emergency situations?
Some credit cards are better than others to finance unexpected expenses. APR introductory APR will allow you to avoid interest while spending time to pay great expenses. The specialized rewards program will allow you to earn some money or other rewards to recover some of your costs if you can pay them immediately.
Pay attention to time tables or spending hats on these offers – there may be restrictions on these features.
When should you use an emergency credit card?
Using an emergency credit card is more logical when you need a fast and easy way to cover surprise expenses, but you know that you will be able to pay the balance completely when it is eligible.
The emergency credit card can also be logical for people who want a ready -made credit line in the event of an emergency. This can be especially true for people who travel and want a credit card that they can use for unexpected expenses. For example, you may have enough money in your bank account to cover a purchase, but it may be difficult to access this money if you are outside. In this case, the emergency credit card can be useful.
The credit card should not be your way if you cannot buy something. Instead, you must Create a budget So you can track the amount he enters and gets out of your account every month. This will help you know how much you have to spend.
The credit card can be a suitable backup, as long as you understand the conditions. Ensure that you can pay the card balance as quickly as possible to reduce interest and not enter the use of a purchasing credit card that you cannot pay.
Even if you have 0 % APR preliminary offer, you will still need to present it The minimum payments Every month to keep your current account. In the middle of the missing, this batch Or that late payment can cause significant damage to your credit and may eliminate the APR preliminary period.
How to use your credit card effectively to the emergency condition
To get the maximum benefit from the emergency credit card, use it only for the purchases that you must put and a plan in its place early to pay the fees. Here are some tips that must be taken into account:
- Avoid temptation to spend. Shipping emergency purchases only you cannot cover the exchange and avoid the situations in which you tend to buy unnecessary goods or make more fees.
- You have a debt payment plan. If you have to cover the car repair bill in emergency or payment for daytime care, make sure you have a plan to pay money. Otherwise, Credit card debts It can become a problem.
- Search for emergency cards with APR offers. If you want to avoid interest fees for a limited time, look for credit cards that come with 0 % interest on purchases or balance transfers or both for a year or more.
- Use rewards to reduce your balance. Some emergency credit cards allow you to earn money for every dollar you spend, which you can recover in different ways. If your card provides a statement of statement as a recovery option, you can recover the rewards to reduce the balance you owe on your card. Just do not fall into the trap of excess spending to earn bonuses.
Alternatives to the use of credit cards for emergency cases
Although credit cards can be a useful tool when you face emergency expenses, there are other types of ways to pay.
- Emergency Fund: Experts recommend providing six -month expenses in A. High -yield savings account To be at hand in the event of sudden expenses or job loss. Although it will take some time to build this amount, working towards this goal can help you prevent the benefit of the credit card.
- Ask for payment plans: If you are tempting Use a credit card to pay your handicraft billThere may be another option. Sometimes, billing companies and lenders will prepare a payment plan if you are facing financial hardship. They may extend your due date to give you more time to pay. Although there is no guarantee, the request for an extension or a proactive payment plan may save you from resorting to a credit card.
- Personal loans: If you need a more fundamental amount of money, a Personal loan You can provide you with a broken amount of money in advance (it is usually $ 2000 to $ 50,000), which you will work on at a fixed interest rate and a fixed monthly payment over a specific period. Some personal loans can be funded as soon as possible on the same day. Compare between different lenders and payment plans to find the best suitability for you.
- Helocs credit lines (Helocs)Helocs use your home as a guarantee of the loan and provide a credit line that you can borrow it as needed. These credit lines require a large amount of home stocks to qualify, and they usually have a withdrawal period where you can borrow money and a payment period as you are no longer able to reach new financing. Credit lines for the home You usually have variable interest rates and establish your monthly payment on the amount of borrowing actually. However, if you fail to pay your Heloc, you risk losing your home.
- Home shares loans: Home stock loans allow you to borrow against shares in your home, then pay the money at a fixed interest rate and a fixed monthly payment. However, you need large home stocks to qualify, and you have to settle on a specific amount of money you need in the foreground. Home stock loans can also take a month or more to move during the process and provide financing, so it will not work in emergency situations when you need money quickly. Like Helocs, home arrow loans are secured, which means that you may lose your home if you cannot pay what you borrowed.
How to apply for a credit card
Once you find the right card, follow these tips for the application:
- Choose a card that fits your needs. This may mean one choice with an introductory APR view or other features.
- Go to the safe location of the credit card source to apply.
- Fill in appropriate financial and personal information, including your name, address, date of birth, social security number, income, monthly rent, or mortgage payment.
- Use the card with responsibility and always pay on time.
Common questions
Should I have an emergency credit card in my wallet or keep it at home?
If you are a traveler, we recommend providing an emergency credit card with you to help move in accidents such as a missed trip. Otherwise, leave an emergency credit card at home to avoid the temptation of unnecessary spending.
How can an emergency credit card improve my credit score?
I measure your merit degree, based on your tracking record with credit cards and loans and Real estate loans. Creating a credit registry and building your credit degree paves the stage to rent an apartment, apply for a car loan and buying a house – in general, the higher your degrees, the lower the borrowing. So even if you are not planning to use an emergency credit card regularly, the presence of one will help you build credit with minimal effort.
What types of credit cards are useful for emergency situations?
Some credit cards are better than others to finance unexpected expenses. APR introduces you to avoid interest while paying a large amount. The specialized rewards program will allow you to earn some money or other rewards to recover some of your costs if you can pay them immediately. Pay attention to time tables or spending hats on these offers: there may be restrictions on these features.
What if I don’t make any purchases on my emergency credit card?
Technically, you do not have to use your emergency credit card. It is a good idea to make a small charge every few months and push it immediately to keep your account active. Credit card exporters reserve the right to close your account without notification of lack of use.
What happens if you cancel my emergency credit card?
Whether you are closing your credit card account it can be a matter of personal preference, but there are some factors that must be taken into account. A credit card – especially those that were open for a while – may have harmful effects on your credit degree. On the other hand, if you cannot use a credit card with responsibility, the account closing may be a good option to avoid using it. Make sure to you Correctly close the account If you choose to do so.
What are the risks of using a credit card?
When you make purchases using a credit card, there are many risks that can have long -term effects on your financial health. If you do not assign full payments, you will accumulate on interest fees if you do not use APR preliminary promotion. You can also hold late fees and other fees for missing payments. In the end, any irresponsible credit use can lead to debt and damaged credit degree.
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