Your financial wellness doesn’t require perfection, just a little preparedness. When unexpected expenses pop up, the right preparation keeps your budget steady instead of sending it into chaos.
Ideally, being prepared means having a rainy-day fund or dedicated emergency savings set aside to solve sticky situations that could derail your monthly budget. When this fund isn’t an option, your emergency credit can also step up and take on sudden expenses.
How to Use Emergency Credit
An emergency credit card can be a real hero for your budget, but it should be used as wisely and responsibly as possible to ensure your balance does not get out of hand. This means thinking of your credit as an airbag for your budget; you hope you won’t need it, but when you do, you’ll be grateful to have it.
Here are a few ways to set yourself up for success when using your emergency credit:
Emergency means just that. Set clear boundaries around what defines an “emergency.” Think of necessary expenses like home or car repairs, medical bills, or even emergency travel. Be firm and don’t leave any room for a gray area with this boundary, no matter how good the sale is on that brand new TV.
Choose your credit line wisely. Maybe you prefer getting cash back or mileage from your card, or maybe your priority is the lowest possible interest, so your payments go further. Whatever your preference, the card you choose in an emergency should be a well-considered and strategic decision.
Pay it back ASAP. Obvious? Maybe, but it's important to keep in mind. Paying off your emergency card should be your absolute top priority once it’s used to avoid paying interest.
Check in often. Don’t let your emergency credit balance be an afterthought you set on autopay and forget. Check the balance regularly to track your payment progress and prevent the urge to reach for it again for one of those aforementioned gray area emergencies. Seeing your progress might even motivate you to make a bigger payment if you’re able.
Although life will always find ways to surprise us, unexpected expenses don’t have to be a cause for panic. Keep your emergency card safely tucked away and rest assured it will be there when its moment of glory comes. Explore Golden1’s credit card products to find your ideal emergency credit option.
