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  • FIRST POST
    • AMC1888
    • By AMC1888 4th Aug 18, 11:55 PM
    • 3Posts
    • 0Thanks
    AMC1888
    Best credit card for emergency use
    • #1
    • 4th Aug 18, 11:55 PM
    Best credit card for emergency use 4th Aug 18 at 11:55 PM
    Hi All

    Looking for some advice, can some body tell me what the best credit card would be to have for sort of emergency use only. I have money in the bank and im paying several bills mortgage etc all fine. Iíve never had a credit card before and would like to have one for any type of unpredictable situation for some support.Bearing this In mind this is something i may never use for years so a deal that might be appealing within the next year might be pointless, so confused with it all !!!128583;!!!8205;!!!9794;!!!65039; The best thing if its possible would be a card with a fair amount of time to pay back the money without getting charged at all as i am full time employed and the money will always get paid back eventually. Iím just trying to plan for any worst case scenario where by my bank account gets emptied !!!128514; I also like the idea of the protection buying with a credit card online gives you as i do this frequently.

    Any help would be appreciated as there is so many different types of cards and deals i dont have a clue!

    Thanks in advance
Page 1
    • eskbanker
    • By eskbanker 5th Aug 18, 12:26 AM
    • 8,229 Posts
    • 9,239 Thanks
    eskbanker
    • #2
    • 5th Aug 18, 12:26 AM
    • #2
    • 5th Aug 18, 12:26 AM
    If you've never had a credit card but do have other credit facilities then I'd suggest starting out by looking at your credit files, to assess how you may be seen by lenders: https://www.moneysavingexpert.com/loans/check-free-credit-report/

    You also have the option of using the MSE eligibility checker to see which cards you'd be most likely to be accepted for: https://www.moneysavingexpert.com/eligibility/credit-cards/

    You may need to just take what you can get to start with, such as a sub-prime card with a low limit and a high APR (https://www.moneysavingexpert.com/credit-cards/bad-credit-credit-cards/), but if you use it regularly and always pay off the balance in full every month then you should eventually have access to better cards with lower (or zero) interest rates and larger limits.
    • AMC1888
    • By AMC1888 5th Aug 18, 1:50 AM
    • 3 Posts
    • 0 Thanks
    AMC1888
    • #3
    • 5th Aug 18, 1:50 AM
    • #3
    • 5th Aug 18, 1:50 AM
    Thanks for your help will look in to it!
    • tastyhog
    • By tastyhog 5th Aug 18, 2:45 AM
    • 519 Posts
    • 926 Thanks
    tastyhog
    • #4
    • 5th Aug 18, 2:45 AM
    • #4
    • 5th Aug 18, 2:45 AM
    the problem with having a card for emergency use is as you've said most purchase offers are time limited, 12 / 18 / 24 months etc from account opening, so next to useless for a long term option

    but credit cards are fairly cheap to borrow on anyway, even for a mid range card at around 18% apr, its about £15 in interest monthly after the up to 50 odd days interest free, for a balance of 1k, not really much to pay for peace of mind to have something to cover unexpected costs.

    personally if it's for emergency use and you wont be carrying a balance that often then i'd just eat the interest rate and chalk it up to the cost of having access to a useful line of credit, but there's nothing stopping you getting a 0% balance transfer card at a later date to transfer any emergency spending to should you need to.
    • glennevis
    • By glennevis 5th Aug 18, 6:59 AM
    • 188 Posts
    • 140 Thanks
    glennevis
    • #5
    • 5th Aug 18, 6:59 AM
    • #5
    • 5th Aug 18, 6:59 AM
    Quote "this is something i may never use for years".


    I had a CC I kept for 'emergency use only', so I never used it. After probably a couple of years the bank advised me they would cancel it due to non use so I started using it regularly, paying the balance off in full by DD every month.
    • Craig1981
    • By Craig1981 5th Aug 18, 7:03 AM
    • 351 Posts
    • 164 Thanks
    Craig1981
    • #6
    • 5th Aug 18, 7:03 AM
    • #6
    • 5th Aug 18, 7:03 AM
    as esknamker said, check a few eligibility. chances are, you will end up with a low limit high APR card to start off with. use it small does and pay off in full to build some history on your file... if doing so , APR doesn't' matter for the time being. and in an emergency, 34% ARP is so much lower than a bank overdraft or payday loan!

    IMHO, an Aqua mastercard is a great starting point, provided you apply or are accepted for their Advance card like i have done in the past. (they have a few different cards)
    it starts at 34.9% apr, but this reduces over three years, by 5% each year. so in three years time, you down to 19.9%, 1% higher than high street lender cards.
    plus, 0% fees on purchases abroad! (reason why i still keep mine around)

    but, like mine, if you stop using it regularly after the 3 years, then interest may go up to 24.9%...
    • worried jim
    • By worried jim 5th Aug 18, 7:17 AM
    • 9,593 Posts
    • 14,772 Thanks
    worried jim
    • #7
    • 5th Aug 18, 7:17 AM
    • #7
    • 5th Aug 18, 7:17 AM
    Just ask your bank for a credit card, you can probably do it now through your online banking right now. I would make a point of using it every couple of months as the bank will cancel it if unused as it costs them money.
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • DCFC79
    • By DCFC79 5th Aug 18, 9:54 AM
    • 32,765 Posts
    • 20,638 Thanks
    DCFC79
    • #8
    • 5th Aug 18, 9:54 AM
    • #8
    • 5th Aug 18, 9:54 AM
    Just make a payment on it each month, say a weekly shop or a petrol top up just to keep it active.
    • 2ilent8cho
    • By 2ilent8cho 5th Aug 18, 11:52 AM
    • 45 Posts
    • 12 Thanks
    2ilent8cho
    • #9
    • 5th Aug 18, 11:52 AM
    • #9
    • 5th Aug 18, 11:52 AM
    The problem is it may get closed before you actually use it due to inactivity. So you need to ideally change habits and start by putting some of the everyday spending through the card, maybe just fuel?

    If you can get it, i would go for one of the Low APR cards both Barclays and Tesco offer at 6.9% APR which means in this emergency you are paying very little interest. It could also double as an emergency instant loan as the both offer money transfers to your bank account with these cards, Tesco all the time, Barclays when the offer is showing.

    Barclays have an eligibility checker if you want to see how good your chances are , Tesco credit cards appear on the Money Saving Expert credit club eligibility checkers .
    • takman
    • By takman 5th Aug 18, 12:07 PM
    • 3,705 Posts
    • 3,359 Thanks
    takman
    Hi All

    Looking for some advice, can some body tell me what the best credit card would be to have for sort of emergency use only. I have money in the bank and im paying several bills mortgage etc all fine. Iíve never had a credit card before and would like to have one for any type of unpredictable situation for some support.Bearing this In mind this is something i may never use for years so a deal that might be appealing within the next year might be pointless, so confused with it all !!!128583;!!!8205;!!!9794;!!!65039; The best thing if its possible would be a card with a fair amount of time to pay back the money without getting charged at all as i am full time employed and the money will always get paid back eventually. Iím just trying to plan for any worst case scenario where by my bank account gets emptied !!!128514; I also like the idea of the protection buying with a credit card online gives you as i do this frequently.

    Any help would be appreciated as there is so many different types of cards and deals i dont have a clue!

    Thanks in advance
    Originally posted by AMC1888
    It's definetly good to get a credit card and use it regularly as other posters have said. This will build up your credit history and also give you section 75 protection for purchases between £100 & £30,000 which makes the card company equally liable for problems.

    But if your worried about your bank being emptied then you should open an account with another bank right away. Look on here for high interest accounts which you can open and put your savings into to use in an emergency.
    • lolcaz
    • By lolcaz 5th Aug 18, 11:03 PM
    • 27 Posts
    • 5 Thanks
    lolcaz
    If you want a credit card open as an emergency, you could put a small subscription on it to keep it active, with a direct debit to pay off in full. Something like a Spotify or Netflix subscription.
    Psst... Nationwide referrals available.
    • AMC1888
    • By AMC1888 6th Aug 18, 12:02 AM
    • 3 Posts
    • 0 Thanks
    AMC1888
    Thanks this is all great info, might sound like a stupid question, but how long do you get to pay back the money before you start having to pay interest on the card, for example if i had a card with 6.9% APR, if I purchased something and paid it off straight away with my debit card would i still be charged? Basically is there a time limit before you start getting charged for any interest at all or are you charged immediately.
    Thanks again
    • eskbanker
    • By eskbanker 6th Aug 18, 1:03 AM
    • 8,229 Posts
    • 9,239 Thanks
    eskbanker
    Every month you'll be issued with a statement listing all transactions for the period, plus a payment due date, which will typically be 2-3 weeks later - if you pay the statement balance in full by the payment due date then there will be no interest charged.
    • onthefencepost
    • By onthefencepost 9th Aug 18, 10:01 AM
    • 186 Posts
    • 39 Thanks
    onthefencepost
    Just make a payment on it each month, say a weekly shop or a petrol top up just to keep it active.
    Originally posted by DCFC79
    THIS!

    Just be careful in my younger days my balances got paid less frequently and got a few defaults due to build of balances - losing my job didn't help but you get the picture
    .
    In recent years everything gets paid off on time. If you can source a cashback / benefits as you spend that will be better.
    • agrinnall
    • By agrinnall 9th Aug 18, 12:54 PM
    • 21,222 Posts
    • 17,043 Thanks
    agrinnall
    In addition to using the card to keep it active, if you set up a DD for payment then if you don't use the card for a period the DD will lapse and you may end up with a missed payment when you do use it - this happened to me when I didn't use my Barclaycard for just over a year, although I was able to pay by another method before it was reported on my credit record, and the DD was reinstated for future payments.
    • sonuenjoys
    • By sonuenjoys 19th Aug 18, 11:41 PM
    • 35 Posts
    • 17 Thanks
    sonuenjoys
    Apply for any credit card that has a rewards or cashback program and dont forget to set up DD. If your DD becomes dormant then it wont process payment unless a statement is generated. Therefore there is a chance of missing the payment for this statement. DD will be active post the "dormant" statement.
    • 18cc
    • By 18cc 20th Aug 18, 2:57 PM
    • 800 Posts
    • 531 Thanks
    18cc
    My advice is as follows:

    1. ask yourself if you really REALLY need a credit card - they have a habit of starting off being paid back each month but slowly over time can leave you with debt you can't repay. Yes, some (most?) people don't fall into this trap but a lot do.

    2. if you decide you want one but for emergencies only, ask your bank for one. No point looking around - you won't be using it much anyway.

    3. Set up a direct debit to pay the minimum amount each month. Then use the card every so often you eg buy petrol once (as others have said and just keep it 'ticking over'. Pay it off every time you use it. You have until the statement date to get a statement and then about 3 weeks from that date to pay off the balance.

    4. Other than this, DON'T spend on it - see point 1.
    • Cisco001
    • By Cisco001 21st Aug 18, 2:55 PM
    • 2,852 Posts
    • 1,213 Thanks
    Cisco001
    THIS!

    Just be careful in my younger days my balances got paid less frequently and got a few defaults due to build of balances - losing my job didn't help but you get the picture
    .
    In recent years everything gets paid off on time. If you can source a cashback / benefits as you spend that will be better.
    Originally posted by onthefencepost
    You can set up direct debit with pay in full every month.
    You don't even need to remember what date for payment!

    This do assume you already have the cash in the bank...
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