True or False? A credit card is a good emergency fund

Next up in the Financial Myths series: “I have a credit card, I don’t need an emergency fund!”

It’s true that you can fall back on a credit card to pay for emergencies. But a Visa or American Express is no substitute for cold hard cash. Using a credit card to pay for unexpected expenses has some real drawbacks that will probably cost you in the long run. Check out the short explainer video here to understand the actual cost of using a credit card as an emergency fund (hint: it’s a lot more than the cost of the emergency itself.)