If you have an emergency fund, congratulations. But when emergencies pile up, should you drain the fund to cover every one of them? It’s a question I asked myself recently after I inherited a car from my mom. While having my own wheels has improved my life, the car has needed repairs that I didn’t plan on.

My emergency fund could have covered the work, but I would have been left without a backup fund to pay my rent if I lost my job. Fortunately, I had a credit card with a very low balance. Plus, it had a sufficiently high credit limit to cover the repairs without hurting my credit score.

Loans you can live with. If you know you will need cash for something coming up-such as new tires for your car-you can apply for a credit card with a zero percent promotional interest rate that lasts for the first 12 to 18 months. For example, the Chase Freedom Unlimited Visa rewards credit card currently offers a 0% annual percentage rate on purchases and balance transfers made in the first 15 months. The Wells Fargo Reflect Visa doesn’t charge interest for the first 18 months, and that can be extended up to three additional months if you’ve made on-time minimum payments. Once approved, you could pay your unexpected bills and make a plan to pay off the balance. To qualify for either card, you need to have a good-to-excellent credit score-at least 670, according to FICO, which provides the credit score most lenders use.

Generally, you have five years to repay your loan, and the interest you pay goes back into your account

But because you can’t plan for most emergencies, applying for a credit card before you need it is a good idea. It could also help you establish good credit. Continua a leggere