Using Credit Card For Emergency Loan

I have seen many people resist to have their personal credit card.

Some of the common reasons I have heard from them are,

Reason No. 1:

If you have a credit card you spend on unwanted things.

Reason No. 2:

I am afraid of losing my credit card or someone will do the fraudulent transaction on my card.

I completely agreed with this reasoning.

If you are afraid of pending more. Then I believe you need to learn how to manage your personal finance.

In my point of view, the person who can’t manage his personal finance is not capable of taking big decisions in life. He is always dependant on someone else.

You find these kinds of people in the category who are always broke.

So to combat this problem, learn how to manage your personal finance.

If we see the second reason, I understand that it is risky to hold a credit card in the world of digital scam.

To overcome this problem, banks are doing their best to secure your credit card. Nowadays it is very hard to do the fraudulent transaction on your credit card.

Your credit card comes with the OTP security, Insurance security, Visa verification step etc. It is not easy to make a transaction on your card without having these details.

In short, the credit card you get from the bank is highly secure in all terms. Your bank is taking care of that.

Why am I asking to have your own credit card?

Last year in July-2016 my Mom got diagnosed with the kidney disease. While having a conversation with the Doctor Harish Pathak from Nanavati Hospital located in Vile Parle West, I came to know it’s a serious health condition and I have to hospitalise my mom for treatment.

Before hospitalising the patient, Doctor generally asks you to have all the required test. As per doctors instruction, I started taking a test of Mom like a Blood test, X-Rays, CT Scan etc.

We were moving from one treatment department to another to have these examinations. There were other patients as well who were waiting in the queue for the same test.

I observed that the family of these patients are so worried. And the most common reason for their concern was arranging immediate cash for the treatment.

Hospitals works on strict rules. They don’t operate you until you make the payment of their fees. In that situation, the middle-class person who is living his life on day to day earning can’t generate immediate cash for a medical emergency.

The only way he can generate money is borrowing funds from relatives or friends. Most of the people use this source when a medical emergency occurs.

You can use your Mediclaim policy, but it takes time to complete their procedure. You can’t wait until your Mediclaim gets approved from the hospital authority. That can be done only when you have completed all the treatments.

When I saw their trouble I was so disturbed by looking at their financial problem.

In my case, I was not worried or anxious about the money matter. I knew that I have credit cards in my pocket whose credit limit is sufficient to deal with such situation so I was calm and proceeding to the treatments comfortably.

When you are dealing with a medical emergency, you should not have the burden of arranging cash. In certain circumstances, you should be taking care of your love once, instead of looking at your bank balance or rushing to contact your friend for the fund.

Why do I suggest to have credit card over the debit card?

The credit card is the personal loan that you get from banks. After making the payment by using your credit card, you get around 25 to 30 days duration to make that payment back.

When you are having the medical emergency you can focus on the treatment instead of worrying about the payment. You will get almost one month time to think about the bill payment.

You can later borrow fund from relatives or friends to pay the credit card payment, utilize your Mediclaim policy or use your existing assets like gold or silver to pay your bills.

The another benefit of having a credit card is you can convert your transaction into monthly EMI. You can choose different payment options as per your convenient. This will give you relief by not paying all your credit card bills at once. You can pay on the monthly basis by paying small interest to the bank. EMI is the convenient way to pay the large amount in the short installment.

By obtaining EMI option you are keeping your other saving in backup for any other unexpected expense.

In comparison, the debit card uses your bank balance when you make the payment. It is equivalent to making the transaction in cash. It takes your money immediately.

I would recommend not using your credit card for the unwanted expense. People generally misuse the credit card facility for buying expensive stuff that they can’t afford. It is recommended that you should have one credit card for emergency spending. Do not block your credit limit by buying expensive stuff.

Some people are not comfortable handling their credit card in day to day traveling. so for them, I suggest keeping your credit card at home in secure place. Use it in the emergency only

Generally, Hospitals are not the fun place to be. You automatically get into depressed mode because different kinds of patients are moving around you. You can feel their pain.

All of the above thoughts are only for feeling calm when you are in the particular situation. As a decision maker, if you collapse in such situation then all world around you will start falling. You have to stand still to lead the condition to take major decisions.

Let me know your opinion and doubts in the comment box. Also, share your story if you have been in such situation.

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Prashant Gorule

I am no one. Trusting my brain signals and moving in the direction they are taking me to. Somehow I believe my brain knows my final destination that will amaze me. If you want to walk with me then feel free to subscribe to my email newsletter in the right hand side box. Cheers...
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