You’re out at a bar with friends at what’s supposed to be your party, and you go to pay for your drinks. Your debit card is declined because of an error on the bank’s end. You try again with another debit card, and it too gets rejected. You call the bank, but they can’t help until Monday morning. You have no choice but to let your friend pay the bill. It’s embarrassing, and it leaves you feeling helpless. But what if you had a credit card and never faced such a situation again?
A credit card can be a lifesaver in an emergency—and it’s not just about paying for drinks at the bar. You can use your credit card as collateral to get out of a sticky situation or pay for something you need immediately. Read about various situations where a credit card can be a lifesaver.
You Need to Make an Emergency Purchase
A credit card can come in handy if you need to buy something but don’t have the cash on hand. For example, let’s say your car breaks down, and you need to pay for repairs. With a credit card, you can pay for the repairs and pay back the money over time. Without a credit card, you would have to find another way to pay for the repairs, which could be difficult if you don’t have any savings.
You Want to Rent a Car
When renting a car, you’re often required to deposit and pay for insurance upfront. If you don’t have enough cash available, a credit card can help cover the costs. The transactions are quick, so using the card won’t be an issue. Click here to know more about how to get a credit card.
You Need to Buy Something Online
You can use a credit card if you want to buy something online but don’t have a debit card. This is especially useful if you’re buying something from an international seller. When you use a credit card, the transaction is processed through your credit card company, which offers more fraud protection than if you were to use a debit card.
You Need to Pay for a Hotel Room
Many hotels require that you have a credit card to reserve a room. This is because they use your credit card as collateral if you damage the room or don’t pay your bill. If you don’t have a credit card, you may not be able to book a hotel room, which can be problematic if you’re traveling for business or pleasure.
You Need to Pay for Gas
Some gas stations now require that you have a credit card to pay for gas. They want to avoid dealing with customers who don’t have enough cash to pay for their gas. If you don’t have a credit card, you may not be able to fill up your tank, which could leave you stranded.
You Want to Avoid Check-Cashing Fees
Check-cashing fees can be expensive, especially if you’re cashing a large check. With some credit cards, you can use them to get cash from an ATM with low cash withdrawal charges. Be sure to pay off your credit card balance in full to avoid interest charges.
A credit card can be a lifesaver in many different situations. If you don’t have a credit card, you may want to consider getting one for emergencies. We hope the above tips will help you decide. But please don’t overspend and make sure you have enough repayment capacity.