When used incorrectly, credit cards can be a source of financial ruin. However, for most people, they are a tool that can be used to build credit histories as well as gain financial flexibility. What are some situations when having a credit card can bail you out?
You’re Stranded in a Strange Town
A freak snowstorm could lead to the cancellation of your flight or leave a major road closed with little to no warning. Having a credit card handy allows you to book a hotel room or even a new flight out of town if there is one available. Your rewards points may even help you get a discount on your new accommodations.
You’re Faced With a Medical Emergency
If you ever find out that you need emergency surgery or that you have to get some dental work done, you will glad that you have your credit card. This is true even if you have insurance because your provider may not cover a certain procedure or cover all of the cost of those that are covered.
You Don’t Have any Cash on Hand
Credit cards are lifesavers if you don’t have any cash on hand and your debit card has been declined. The credit card can be used to pay for dinner, buy your groceries or pay for gas to put in your car. While you want to pay off that credit balance as soon as possible, your credit card means that you can eat or drive your car right now.
You Need Your Cash to Pay Rent or Other Expenses
Even when you do have enough cash on hand to pay your grocery or other daily expenses, you may need to hold your cash back to pay rent or other larger monthly bills. Therefore, your credit card can come in handy for a few days until your next paycheck comes in and you have enough to go back to cash instead of paying for items on credit.
A Major Bill Is Due Immediately
If you don’t pay your mortgage, you could lose your house. If you don’t pay your car note, you lose your car or risk having it shut off on you. In some cases, you could lose your spot in college in some other sort of educational opportunity if you don’t pay the tuition. With a credit card, you can pay that bill immediately and avoid the penalties that come from a missed payment.
A credit card can be a lifesaver in situations when you don’t have cash, don’t have enough cash or can’t pay in cash or with a check. Therefore, make sure that you have one handy just in case even if you don’t plan on using it on a regular basis.