Using Zero Percent Credit Cards For Emergency Expenses

Like we said before, there is always a right way and a wrong way of using your credit cards. If you know what you’re doing, you can capably use your plastic purchasing power for taking care of emergency cash needs without falling into bad forms of debt.

While most people will warn you to steer clear of such practices, zero percent cards (typically balance transfer cards) has worked out as an immediate cash source for a lot of people. Of course, this financial behavior is not for everyone and will likely dig most people into a credit trap. If you’ve proven yourself to be highly responsible with your finances, though, and are confident in your ability to manage them well, it’s definitely worth the trouble.

If you have demonstrated bad credit handling in the past, whether in the form of late payments, exceeding your limits and missing payments entirely, these zero-percent balance transfer cards can signal your death knoll into financial disaster. This post is not for you - best to move on elsewhere.

For instance, if you suddenly have an unexpected emergency bill pop up, such as a medical expense not covered by your insurance or a note from the IRS for missed taxes, a balance transfer card can handily dig you out of the mess. If you have good FICO scores, you can easily apply for one of those 0% APR for 12 months cards and have your new plastic purchasing tool in less than a month. If you have a relatively new one with the zero percent period still a good few months out, that should do as well.

Instead of burrowing into your savings account and paying with cash, you can easily use the card to settle the bill. With no interest on the borrowed amount for the duration of the 0% APR period, you can pay off the money in much more manageable chunks instead of a huge lump sum. That translates to a much easier time settling the emergency bill, without getting into unmanageable debt in the process.