Because you should be building a real emergency fund with real money. Not borrowed money. Depending on your credit cards for emergencies is not a good idea.
Once you use your credit cards for emergency expenses you begin a vicious cycle. Especially if you can't pay off the balance on the credit cards. You can make your credit card companies nervous if you have an unpaid balance where there was once none. It may also make other credit card companies you have accounts with nervous too. It may cause the credit limits on all your credit cards to get cut. All this in turn can cause your FICO credit score to drop and you may then see the interest rate on your credit card to rise.
The best solution is not to use your credit cards as your safety net. Instead develop a real emergency fund in a savings account.
Once you use your credit cards for emergency expenses you begin a vicious cycle. Especially if you can't pay off the balance on the credit cards. You can make your credit card companies nervous if you have an unpaid balance where there was once none. It may also make other credit card companies you have accounts with nervous too. It may cause the credit limits on all your credit cards to get cut. All this in turn can cause your FICO credit score to drop and you may then see the interest rate on your credit card to rise.
The best solution is not to use your credit cards as your safety net. Instead develop a real emergency fund in a savings account.
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