Why You Need an Emergecy Credit Card
We all know that life happens; and whenever things go out of our hands, it tends to get expensive. In an ideal world, having an emergency fund where you’re not building debt is best, but sometimes it’s not feasible. Having a credit card dedicated to emergencies is a great alternative. Here are some reasons to make sure you’re prepared:
You try to start your car but nothing happens
Nothing is more frustrating than car troubles or when you start to hear that dreaded grinding sound; it’s unexpected and most of the time it comes with a hefty price tag.
Money’s tight and you can’t pay that bill on time
Sometimes, things get tight or we get a surprisingly large bill we weren’t anticipating that month. Having a credit card for these situations can lighten the stress.
Don’t get comfortable with this one (meaning don’t use this for every bill-every month), use this for dire emergencies only.
Unexpected Medical Expense
Your health is something that should be taken very seriously and you shouldn’t postpone any health issues you’re having because you can’t afford it (you can’t rely on insurance to cover the whole cost). Having an emergency credit card can take some of the burden away, so you can focus on what’s most important.
Losing a job
Let’s hope this one doesn’t happen, but it’s better to be prepared. Make sure you have funds available if this type of situation ever happens to you. You can still provide for yourself during the process of finding another job.
Think it through…is this actually an emergency? Are those cute heels a necessity in this time or do you need to go out to an expensive dinner on the card? Make sure you’re using the credit in the way it’s meant to be; an emergency.
Surprise Home Repairs
Some items in your home cause you to pull out the big bucks- like a roof that’s falling apart, termites eating away at a deck, or a water leak on the main floor. Owning a home is expensive, and it’ll be a big bombshell to your bank account when the repairs are needed.
Simply a stress reliever
Maybe you’ll never have to use your emergency credit card for an actual predicament. But as long as you keep it open and in good standing, having that comfort knowing you have some back up money will be worth it.
Look for the card with the lowest interest rate, as you might land yourself in a situation where paying the full balance might take a while.
Next time something unexpected happens, make sure you’re prepared. The Credit Union has different options for credit cards so you can pick the one that’s right for you.
Do you have any stories of unexpected expenses? How did you cover them? Let us know in the comments, we’d love to hear!