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Use Credit Wisely in Uncertain Times

User applying for a starter credit card with no deposit

If you are among those suddenly forced to rely on credit cards to get by, make sure to do so cautiously and in the smartest way possible. Running up the balance on credit cards is never ideal, but if a sudden change in income leaves you unable to cover your day-to-day living expenses with your savings or emergency cash fund, a credit card may be your only choice. If that’s the case, make sure to limit your purchases to essential items only.

It is also extremely important to keep your payments up-to-date and pay at least the minimum amount due on each statement since failing to do so can send your interest rate soaring and eventually hurt your credit score. Just as they have done in the wake of other recent disasters, many credit card issuers are temporarily deferring monthly payments, waiving interest charges or lowering interest rates for customers facing financial hardships.

Since assistance is typically on a case-by-case basis, if you think you need help, you should call each of your credit card issuers and discuss your individual situation with them. Keep in mind, however, any assistance will only be temporary, and you may ultimately be on the hook for any and all charges you accrue, along with interest, so it is important to use your cards cautiously.

Other options you may want to consider, depending on your finances and your credit rating, are taking out a short-term personal loan, or utilizing a zero-percent introductory offer on a new credit card if you are eligible. Please let us know if you have questions or need help with your credit. Alpine Bank has a credit card deferral program available for eligible credit cardholders, as well as some of the best starter credit cards for those looking to start adding to their credit history.

About This Author


Alpine Bank Staff

Alpine Bank is an independent, employee-owned organization with headquarters in Glenwood Springs and banking offices across Colorado’s Western Slope, mountains and Front Range.

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