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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