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Should you use a 0% APR card to cover an emergency?

April 20, 2024
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3 min read
Man using credit card and laptop at home
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You may have considered using a 0% annual percentage rate credit card to cover an emergency, as it gives you time to pay off your card without incurring interest costs.

But is there a right and wrong time to use a 0% APR credit card? And how does the process work when the time comes? Here's what you need to know.

When to use a credit card to cover an emergency

If you have a zero- or low-interest credit card and a history of responsibly using credit, it might make sense to use credit to cover an emergency — provided you can still pay off that amount in a reasonable time frame.

The important thing here is to weigh all your credit card options, factoring in the item(s) you're buying, how much you'll be spending, and how you plan to pay off your purchase. The latter is especially important because if you can't pay off your balance before the promotional period ends, you'll be right back where you started: paying interest.

When to consider other options

On the other hand, if you feel you can't pay off your balance on time or have a spotty track record regarding credit usage, you might be better off finding another way to cover your emergency.

A customer browses through a home improvement store
MASKOT/GETTY IMAGES

For example, if you have an urgent home renovation but don't want to risk paying credit card interest, consider other options. You could use a retailer's installment plan, use a buy now, pay later service, or borrow money from family and friends.

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The right financial solution will ensure you don't pay interest or other fees.

Avoid interest whenever possible

It goes without saying that you should avoid paying credit card interest — life is expensive enough as it is. Having a plan to pay off your purchases in a reasonable period means you'll save money, remain in good standing with your card issuer and protect your credit score.

A young man holding a credit card while on the phone, looking perplexed
KOSAMTU/GETTY IMAGES

Bottom line

Like any large purchase, using a 0% APR card to cover an emergency can make sense — provided you've found the right card for your purchase and can pay off your balance without paying interest.

With emergencies in particular, though, you'll obviously have enough things to stress about without wanting to add an interest-heavy credit card bill to the list. Finding a financial option that works for you ensures you can cover that emergency promptly and return to living in the black as soon as possible.

Featured image by WESTEND61/GETTY IMAGES
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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at American Express's secure site
Terms & restrictions apply. See rates & fees
Best for dining at restaurants

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TPG Editor‘s Rating
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Rewards Rate

4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
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  • Intro Offer

    As High As 100,000 points. Find Out Your Offer.

  • Annual Fee

    $325

  • Recommended Credit

    Excellent to Good

Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.