If you need a small amount of extra cash to help you through a minor financial crisis, consider taking out a personal loan instead of turning to credit cards. If you need a few thousand dollars to fix your vehicle, purchase a used vehicle, or pay for an unexpected travel expense, a personal loan is a better option for many than turning to credit cards. The obvious reason is the lower interest rates and fees you will pay by borrowing with a personal loan versus racking up credit card fees and cash advance fees.

Even if immediacy pressures you into using your credit card in a cash flow emergency, it’s not too late to apply for a personal loan to pay off your credit bill fast. You will be better off paying a lower interest rate on a personal loan than a high credit card interest rate over the course of several months or a year.

Today, if your credit isn’t pretty darn good, you might not be approved for an unsecured personal loan, but it may still be worth a try. Whether you’re approved for a personal loan or not, consider your cash flow emergency a signal that it’s time to start setting aside money for an emergency cash savings account. A great way to start is by continuing to make “payments” in the amount of your personal loan or credit card monthly payment even after what you’ve borrowed is paid off. Put that money aside, and you’ll be prepared for the next cash flow emergency.