The financial flexibility and other credit card benefits make them so popular to use on a daily basis. Life can sometimes throw challenges on you, like sudden medical emergency, loss of job or unplanned relocation. Almost every emergency calls for unplanned expenses.
What if you still don’t have an emergency fund in your bank? That’s how your credit card can help you buy some time. You can use your credit card in an emergency, pay dues on time and stay debt-free.
A credit card gives you quick access to funds and flexible payment options, builds your credit history, and provides secured transactions without hassle. You can get emergency funds through credit transactions and cash advances.
A cash advance is a short-term loan against your credit line at a higher interest rate than a conventional credit card transaction. You can access cash advances at a bank or ATM and use the same to handle an emergency quickly.
How Can Your Credit Card Save You in Diverse Situations
Credit cards ensure convenience for their users seamlessly. Digital cards are popular among the current generation, seeking a lavish lifestyle with hassle-free funding solutions, both online and offline. You can use your credit card online/offline wisely during an emergency. Follow these simple tips and tricks:
-
Keep a designated emergency credit card reserved for requirements related to emergencies.
-
Get comprehensive knowledge about your credit limit and interest rates on payment modes like cash advances.
-
Pay off your outstanding balance promptly to avoid late payment fees.
Here are a few situations where credit cards can be lifesavers.
-
In A Sudden Medical Emergency
A medical emergency can require immediate hospitalisation or treatment. This raises the necessity of a sizeable expenditure for family members. Many people have health insurance, but that may only cover some things.
Some may even have to deplete their savings to meet the needs of the hour. There is little you can do in this case. You may also have to bear the cost of transportation and other pre-hospitalisation charges before opting for cashless treatment options.
That said, a credit card bears all your expenses and helps you overcome the challenge in that scenario. You can pay without anxiety and focus on getting the best treatment for that family member. You can avoid exhausting yourself, depleting your savings, or compromising your health.
-
Sudden Loss of Job
A financial imbalance can happen when you lose a job without prior notice. A credit card is an excellent solution in such a scenario because it provides temporary relief. You can manage daily expenses like groceries, rent, and other utilities during that time.
In such instances, credit card usage provides temporary financial relief. It helps cover expenses for necessities until you secure financial stability.
-
Unexpected Relocation or Travelling
Relocation can happen because of your job or a family requirement. You can use your credit card to pay for your moving expenses or manage the accommodation costs.
-
Sudden Repairing of House or Any Other Costly Commodity
Unexpected requirements for repairing your house, like a leaky roof or a broken heavy appliance, can occur. Such issues have to be addressed urgently, and you need instant funds to do so.
With a credit card, you can manage these costs effortlessly. But make sure to clear your dues on time and in full to maintain a positive credit history.
-
Unexpected Gifting for Weddings and Other Occasions
You can get sudden invitations for weddings. Considering the trend of big, fat Indian weddings and accompanying rituals, you may wish to spend extravagantly on gifts. You can distribute your varied expenses over different billing cycles using your credit card.
-
Sudden Breakdown of Your Vehicle
You will require immediate and additional funds for repairs at the service centre or by calling a team on the spot. Credit cards are handy in cases where you haven’t created an emergency fund.
Credit cards are making everything easy and possible, even handling tricky emergencies. All you have to remember is to pay on time and avoid a mounting debt. You can easily apply for a credit card online, use it responsibly daily, and follow effective financial strategies to repay on time.
With this in mind, you can continue to use your credit card as an emergency fund. The One Credit Card provides the option of One Cash, an easy way to get instant cash on your digital wallet to manage unexpected situations quickly and hassle-free.
The One Card App lets you track transactions and manage your finances online. The One Credit Card offers 5X rewards on your top 2 spend categories and great offers on entertainment, travel, shopping, utility bills, and education. Apply now and enjoy financial freedom at your fingertips!
