During times of emergencies, credit cards can be an invaluable lifeline to help you settle any urgent expenses. For example, in months when you’re short on budget, or if an expected income gets delayed, you can use your credit card to settle bills and financial obligations temporarily.
You can even use your credit card rewards to save money on essentials, allowing you to redirect funds to emergency expenses instead. The Landers Cashback Everywhere Credit Card gives up to 5% cashback at Landers, 2% on dining spends, and 1% on other qualified transactions.* These rewards can provide breathing room during emergencies while still covering daily necessities like groceries.
Another way to use your Landers Cashback Everywhere Credit Card in emergencies is through cash advances, which let you withdraw part of your credit limit as cash from an ATM. Remember that cash advances usually have different fees and interest rates, so check your card’s terms and plan repayments carefully.
However, irresponsible credit card use can worsen your financial situation, leading to long-term debt. To avoid this, follow these responsible usage tips during emergencies:
1. Set Clear Boundaries for Emergency Use
Define what counts as an emergency beforehand to avoid justifying unnecessary expenses. For instance, unexpected hospital bills are emergencies, but buying a new TV on sale is not. Write down emergency scenarios to refer to during crises, keeping your credit limit available for truly essential needs.
2. Use Only What You Can Afford to Repay
Only charge amounts you can realistically pay off in the next billing cycle or a few months to avoid high interest charges. Use your card’s spending limits and transaction blocking features (available via the Maya app for your Landers Cashback Everywhere Credit Card) to keep your spending on track.
3. Prioritize Cards with Low Interest Rates
If you have multiple credit cards, use the one with the lowest interest rate for emergencies to minimize interest charges and help recover faster financially.
4. Use Cash Advances Wisely
Only use cash advances when absolutely necessary. Keep the amount low to reduce interest charges and preserve credit for other urgent needs.
5. Monitor Your Spending Closely
Track your expenses carefully to avoid exceeding your emergency budget or credit limit, which can cause over-limit fees. The Maya app makes monitoring your Landers Cashback Everywhere Credit Card transactions simple and convenient.
6. Plan for Repayment Immediately
After the emergency, prioritize repaying your debt quickly to avoid high interest costs. Adjust your budget to make timely payments and keep debt manageable.
With discipline and planning, you can use your credit card effectively during emergencies without falling into long-term debt. Keep these tips in mind to navigate financial crises responsibly and protect your financial future.
*Transactions that don’t qualify include: cash in, cash advance, quasi cash purchases, casinos and gambling, fuel, supermarket, pharmaceuticals, utilities, telco, and government.
