When life hits hard, here are 5 credit card rules you can break during an emergency

You’ve likely heard credit card advice like “don’t carry a balance” or “don’t spend up to your credit limit.” In normal times, these rules serve as guardrails to keep you from falling into debt or racking up interest charges.

But what if you’re facing a financial emergency? Maybe a layoff forces you to rely on your credit card for living expenses, or a trip to the emergency room leaves you with a bill you have no other way of paying. In cases like these, don’t be afraid to sidestep typical credit card advice if you need to. The important thing is understanding the tradeoffs, so that you can make informed decisions and minimize the impact on your finances in the long run.

Here are some of the most common credit card rules and why you can break them in a financial emergency.

One of the cardinal rules of responsible credit card usage is “don’t carry a balance from month to month” or “always pay your statement balance in full.” When you don’t pay your full statement balance by the due date, credit card companies typically charge high interest rates — often over 20% APR — on the remaining balance. Credit card interest compounds daily, so the longer you carry a balance, the more interest charges you’ll rack up and the faster your debt will grow.

In an emergency, it can be okay to treat your credit card like a short-term loan and carry a balance if you have no other choice. However, be strategic about it. Choose the lowest-interest-rate credit card you have access to — ideally one with a 0% introductory APR offer — to minimize interest. And make a plan to pay off your balance as soon as the emergency is over.

If you have existing credit card debt, paying the minimum payment required by your issuer each month will keep your account in good standing. But the minimum payment is usually too small to make a meaningful dent in your balance, so you’ll be in debt for a long time if that’s all you’re paying. Experts recommend paying more than the minimum to clear your debt faster and pay less interest in the long run.

But if you’re having an emergency and need to prioritize essential expenses, like rent or groceries, instead of debt payoff, it’s okay to only pay the minimum until you get back on your feet. Just be sure you’re paying at least the minimum payment by the due date, or you could be hit with late fees, a penalty APR or other negative consequences.

If you can’t make the minimum payment, call your credit card issuer as soon as possible to explain your situation and see what options they can offer.

Credit utilization is the total percentage of your available credit that you’re using, and it’s an important factor in determining your credit score. To keep your credit score healthy, experts recommend keeping your credit card utilization under 30%. So, if your total credit line is $1,000 across all your cards, you should keep your total balance below $300 at any given time.

Luckily, the consequences for breaking this guideline aren’t permanent. Credit card issuers generally report your information to the credit bureaus monthly, which means that once you pay down your balance, your score will likely recover within a billing cycle or two. Don’t be afraid to charge necessary expenses to your credit card, but do try to have a plan to pay it off as soon as possible.

If you want to reduce your credit utilization without reducing your spending, you might try requesting a credit limit increase from your issuer. You can typically call the customer service number on the back of your credit card and speak to a representative, but some issuers — like Chase — let you request within your online account or their mobile app.

You should typically have an emergency fund with three to six months’ expenses so you don’t have to rely on credit cards to get you through a financial crisis. But if you’re currently in an emergency and don’t have an emergency fund, it’s okay to use your card to cover your necessary expenses.

If you have a good credit score and enough time to apply for a new card, try to get a 0% APR credit card to minimize interest. Once the emergency is over, strive to pay off your balance as quickly as possible, then start building a cash emergency fund in a savings account. Even setting aside $50 a month will help you save $600 a year, which you can use for the next emergency.

• Interest rate and fees: Try to find a card with no annual fee and a 0% intro APR offer, if possible. Otherwise, choose the card with the lowest regular APR available to you.
• Instant access: Some issuers offer instant-use virtual cards, which can be useful if you need to make a purchase before the physical card arrives.
• Credit requirements: The better your credit score, the more likely you are to qualify for cards with lower fees and APRs or 0% intro APR offers. If you have poor or fair credit, you might still be able to get a credit card to use in an emergency, but it’ll likely cost you in the form of higher fees or APRs.

The no-annual-fee Chase Freedom Unlimited® (see rates and fees) offers a 0% introductory APR on purchases and balance transfers for 15 months after account opening (18.24% to 27.74% variable APR thereafter).

New cardholders also get a limited-time $250 welcome bonus after spending $500 in the first three months, but you shouldn’t spend more than you need to just to earn the bonus. You can add your Chase card to a digital wallet instantly after approval and use it at vendors that accept digital wallets. You can also call customer service to request expedited shipping for your physical card to get it in one to two business days at no extra cost.

The Blue Cash Everyday® Card from American Express has a 15-month 0% introductory APR offer on purchases and balance transfers (19.49% to 28.49% variable APR thereafter) and no annual fee (see rates and fees).

It offers a welcome bonus as high as $200 cash back after you spend $2,000 in purchases on your new card within the first six months. Further, you can check whether you’re approved with no impact on your credit score (accepting the card after approval may affect your score). If you’re approved, you’ll get an instant-use virtual card number you can use for online purchases before your card arrives.

While the Chase Freedom Unlimited and Amex Blue Cash Everyday both require good to excellent credit for approval, you might be able to get the Capital One QuicksilverOne Cash Rewards Credit Card even if you have fair credit. However, it’ll cost you — the card has a $39 annual fee and a 28.99% variable APR with no intro APR offer. You may be able to get an instant-use virtual card number after you’re approved. It’s an okay option if you don’t have great credit and need immediate access to a credit line, but if you plan to carry a balance for some time, you should look into lower-interest alternatives like a personal loan.

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For rates and fees of the Blue Cash Everyday® Card from American Express, click here.