4 Appropriate Uses of Your Emergency Credit Card
A credit card is something that should be used with as much discretion as possible. Too many people see credit cards as an endless reservoir of cash that they don’t need to pay back. To avoid significant debt, you should only use a credit card for emergencies.
Others, in a heartfelt attempt to be financially responsible don’t open lines of credit in order to avoid debt. However, this can hinder credit scores which can result in less financial freedom and a low credit score.
Responsibility and a plan can help you with credit. These are four appropriates uses of your emergency credit card.
Medical copays
Your health coverage doesn’t have an HSA account, which works as a debit card of pre-taxed income that can be used for medical purposes.
Often times your work can match your HSA donation. Not everyone has an HSA account or company match.
Even if you have health insurance, you might have trouble affording copays when visiting the doctor.
You want to get your ailment taken care of, but you don’t want to dip too much into your bank account.
Hospitals and doctor’s offices will gladly accept a credit card for a copay. You can also see if they’ll take part of the payment as a card and another part in cash.
Emergencies happen. You can’t control getting sick. Don’t beat yourself up or neglect medical care because of the bill. Medical emergencies are a time where it’s completely appropriate to use a credit card without guilt.
You and your family are more important alive than in debt. If needed, many hospitals often financial assistance and forgiveness programs based on income. Ask and receive help.
Car repair
You hear a sudden rattling in your engine and need to take it into the shop. The bill is pretty steep, but your credit card helps you out.
As long as you’re not accumulating a balance, you should have enough room on your card to cover the cost. Make sure that you find an honest repair shop that will charge you a reasonable amount.
It’s also good to have an emergency fund handy in the event of any vehicle mishaps. You don’t want to do this for a vanity upgrade or new speakers.
However, if you can’t get to work or take your kids to school without transportation. It’s better to fix your car with a credit card than to risk your job because of unexpected attendance.
Home repair
If your home is in need of some upheaval, a credit card can really come in handy. This doesn’t mean to use your credit card for any makeover.
You can save for cosmetic makeovers and do one project at a time. However, If there’s flood damage or you’re in need of heating repair, you can put it on your credit card.
This is especially true if you live somewhere very cold. A small leak can turn into a black mold infestation pretty fast.
A broken water heater can turn into a leak and into sickness for your family. Talk to different home repair professionals to see who will charge the most reasonable amount.
Bills
Sometimes, bills can sneak up on you. You want to do your best to keep on top of them, but sometimes you need to use your credit card.
You shouldn’t put all of your bills on your credit card, but there’s no problem in doing it once in a while, provided you can pay it off at the time of your next credit card statement. To keep better track of your bills, consider signing up for autopay.
Your emergency credit card can get you out of a jam as long as you only use it when you need it and don’t go above your means.
By having your credit in good standing, you can avoid the pain of mounting debt. Keep your credit card in mind for emergencies, but don’t let it become your only source of spending.
Category: Credit Card
