Emergencies don’t announce their arrivial – they can happen anytime. From medical care and unexpected home repairs to last-minute travel needs, emergencies demand quick financial attention. However, not everyone can arrange funds instantly or maintain contingency reserves that they can dip into. In such difficult situations, a credit card can be the financial lifeline you need.
Credit cards bring instant monetary relief but using them responsibly and judiciously is equally important. This blog discusses some valuable credit card tips for emergency expenses so that this tool offers financial relief and does not become another burden.
Choose the right credit card
Look for cards with lower interest rates, an extended grace period that gives you time to pay off balances without accruing interest, and minimal fees. IndusInd Bank Platinum RuPay Credit Card offers these benefits along with additional perks such as:
- 1% fuel surcharge waiver
- Link your credit card to your UPI and make quick payments
- Earn reward points on both UPI transactions and non-UPI transactions
Simply click on this “credit card apply” option to get started with IndusInd Bank today. Enjoy a 100% paperless process and handle all emergencies without any delay.
Use your card for real emergencies
Ask yourself if you have a genuine emergency. Genuine emergencies are unexpected expenses that you cannot avoid or postpone, like medical bills, urgent car repairs, unavoidable travel due to a family crisis, and so on. Avoid using your emergency credit for impulsive buys or non-essential expenses.
Remember, the purpose of having a credit card for emergencies is to get financial help during unforeseen and unavoidable situations.
Pay off the balance as soon as possible
The longer you delay, the more interest accumulates, which makes your debt more expensive. So, make it a priority to allocate funds towards clearing credit card debt as soon as you are financially able to. Early repayment saves on interest and improves your credit score and financial health.
Never skip an instalment
Missing an instalment can have consequences like late fees, penal interest, and damage to your credit score. So, even if you are unable to pay off the full balance, make sure to make the minimum payment. This practice is crucial for maintaining financial stability and avoiding additional charges.
Opt for a credit card balance transfer to save interests
Paying high credit card interest rates on your debt? Many credit card issuers offer balance transfer facilities that can provide relief by lowering your interest burden.
Simply apply for a credit card online with the right bank and complete all the formalities from your home. Read the terms and conditions carefully before proceeding, as there could be fees associated with the balance transfer.
Use credit card offers and rewards wisely
Many banks offer credit card offers and rewards such as cashback or points for transactions. If you are using your credit card for an emergency, check if you can utilise these benefits to slightly reduce the burden of unexpected expenses.
Do not spend unnecessarily just to earn more rewards. Instead, use your card responsibly, focus on the right expenditure, and then apply any cashback or points you accumulate directly to offset the emergency costs.
More tips to responsibly use a credit card for emergency expenses
Check out some additional tips on how you can use your credit card responsibly to manage emergencies:
- Reserve an emergency-specific credit card with a high credit limit and lower interest rate, only for urgent situations.
- Have a clear repayment plan if you are using your card for large emergency expenses.
- Set up automated payments so that your Equated Monthly Instalments (EMIs) are paid on time.
- Track your credit utilisation ratio to make sure using your card for emergencies doesn’t harm your credit score.
- Utilise digital banking services to manage your credit card account better.
The bottom line
Credit cards offer a financial backup during emergencies. However, this lifeline can easily cause a cycle of debt if not managed wisely. By selecting the right credit card, assessing its terms, using it smartly, and planning repayments, you can deal with emergency expenses without compromising your financial health.
Use credit cards as a tool, not as a crutch. After all, you have to repay the borrowed amount and bear interest if you exceed the interest-free period. Always use credit cards responsibly so that you get financial relief in hard times without burdening your future with high-interest debt.