ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Putting Your Credit Card To Use To Bail You Out Of Tough Situations

Putting Your Credit Card To Use To Bail You Out Of Tough Situations

June 25, 2010 | Updated on June 25, 2010
Add to Favorites:
The content is accurate at the time of publication and is subject to change.

It is common sense to have an emergency fund in place to help us during unforeseen financial emergencies. This is possible only when there is a strong cash balance in any of the savings accounts that yield high returns. This cash should be looked towards only in situations when you have no other options but to delve into your savings. However, things have changed drastically these days. People are no more dependent on their high profit savings account but on credit cards to bail them out of emergencies. The credit card can prove to be really useful when you don't have anys money saved up for tough times. But, it is important to note that there are both benefits and drawbacks associated with using these cards during times of financial emergency. Simple steps can ensure you don't get into the debt trap easily.

One of the mistakes made by people is that most of them who intend to use credit cards for emergencies end up using them for almost every expense.

Hence, when the actual emergency arises, they find themselves in a fix with their credit cards maxed out and having no cash funds to delve into. This negates the entire purpose of holding credit cards for emergencies. Emergency is not about paying utility bills or taking family members out for dinners or even shopping. Define the term emergency before you apply for a card to help you during such times.

To ensure the emergency credit card is indeed available for use during such circumstances, clear off all the debts on the card regularly. It is not a happy situation when you have used the card for one particular situation and have left the debt accumulate and don't have any help on hand when another emergency hits you on the face. In fact, a lot of people are resorting to various other small time jobs to supplement their income. Use the money earned from such jobs to clear off all dues on the cards and keep them ready for use during unforeseen circumstances.

Just because there is a need for a credit card during emergencies, don't jump at any credit card offers that come your way. Innumerable people have gotten into the debt trap by choosing the wrong credit card without reading the terms and conditions. With the new rules and regulations tightening the belts of the banks, these entities are finding newer ways to make up for the amount they are losing. Hence, make a well informed decision while choosing any credit card with the intention of putting it to use during emergencies.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!