Unless you have cash on top of cash sitting in the bank, it’s a good idea to keep an emergency credit card nearby.
You hope you are never faced with an emergency in the future, but you realize this could happen at some point. From a medical emergency to a car repair, something bad could go wrong when you least expect it.
So, this brings us to an important question: what should you look for when choosing an emergency credit card?
While there are many details to consider, here are three of the most important:
- You want to make sure the limit is high enough to handle any and every emergency. For example, a credit card with a $500 limit may not get you very far if your car breaks down and requires an immediate repair.
- Low interest rate. Since you may not be able to immediately pay off your balance in full, it’s important to find a credit card with a low interest rate. This way, you don’t get hit with a huge finance charge as each new cycle turns over.
- Universal acceptance. There is no way of knowing where you will be when you face an emergency. Also, there is no way of knowing who you will have to pay. You need a credit card with universal acceptance, as this puts you in position to use it whenever and wherever necessary. Generally speaking, it’s best to opt for a Visa or MasterCard.
If you keep these three details in mind when searching for an emergency credit card, you’ll find it much easier to settle on the perfect offer.
Do you carry an emergency credit card? Have you ever had to use it? What do you like and dislike about it? Share your personal advice and experiences in the comment section below.
This has taught me a lot about all accounts, not just credit cards
Make sure limit is high enough for emergencies, and check to be sure balance doesn’t have to be paid all at once
Low interest, Universal exceptance