Personal Finance Myth #27

Your credit cards serve as an emergency fund | Vrid
People illustrations by Storyset

Credit cards serve as an emergency fund

People think as long as they have a credit card, there is no need for an emergency fund. 

Sorry to burst the bubble, but credit cards do not serve as an emergency fund. 

You won’t be able to pay your rent, food expense or a home loan EMI through a credit card for 2-3 months if you lost your job. Having an emergency fund is a must. It should have at least 6-9 months’ expenses.

Learn more about credit cards and credit score from our credit card series.

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DISCLAIMER: This newsletter is strictly educational and is not an investment advice or a proposal to buy or sell any assets. Please be careful and do your own research.

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