Most financial experts will tell you that carrying a credit card balance is a bad idea. In general, they’re right. Interest rates on credit cards are some of the highest around, and debt can snowball quickly if you’re not careful. But there are a few situations where it might actually make sense to carry a balance, at least for a short period of time.

This article breaks down when it’s worth considering, the risks involved, and how to do it without wrecking your finances.

Any information provided on this site is for educational purposes only. JGW Connects, LLC is not an agent of you or any third party advertiser on this website. You should rely on your own judgement in deciding which available product, terms and provider that best suits your personal financial requirements. We do not offer financial advice, advisory or brokerage services. We recommend that you consult with our own independent advisors regarding these products and services

What Does “Carrying a Balance” Mean?

Carrying a balance means you don’t pay your full credit card bill by the due date. Instead, you pay a portion of what you owe, and the remaining amount rolls over to the next month. Unless your card has a 0% promotional rate, interest starts accruing on the unpaid amount—usually daily.

The General Rule: Pay in Full

Paying off your balance each month is the smartest move for most people. When you pay in full, you avoid interest charges, keep your credit score strong, and don’t let past spending eat into your future income. That said, life doesn’t always go according to plan. In some cases, carrying a balance is the more practical choice.

When Carrying a Balance Might Actually Make Sense

1. You Have a 0% APR Promotional Offer

Some credit cards come with a 0% introductory interest rate on purchases for a set period—often 12 to 18 months. During this time, you won’t pay any interest on your balance. If you need to make a large purchase and pay it off slowly, this can be a helpful tool.

When it works:

• You have a large expense like a car repair, medical bill, or appliance purchase.
• You have a clear plan to pay it off before the promotional rate expires.

What to watch for:

• Missing a payment can cancel the 0% offer and trigger a much higher rate.
• Always read the fine print. Some offers charge backdated interest if you don’t pay the full amount before the promo ends.

2. You’re Facing a Financial Emergency

When there’s no emergency fund and your only other option is missing a payment or defaulting on something more critical, a credit card might be your lifeline. If it helps you keep the lights on or pay for necessary transportation, the short-term interest charges might be worth it.

When it works:

• You’re covering absolute necessities like rent, food, or utilities.
• You expect your situation to improve within the next month or two.

What to watch for:

• This is a last resort, not a habit. The goal is to stabilize your situation, not kick the can down the road.

3. You’re Managing Seasonal or Fluctuating Income

If you’re self-employed, freelance, or work a job with unpredictable income, carrying a balance during low-income periods can help smooth out cash flow. This approach can help you avoid dipping into savings or taking out a higher-interest loan.

When it works:

• You’ve already budgeted and expect more income soon.
• You’re using your card to cover temporary shortfalls, not ongoing lifestyle spending.

What to watch for:

• Make sure you’re not spending more than you can repay in the near term. Use this as a short-term strategy, not an ongoing crutch.

4. You’re Consolidating Debt With a Balance Transfer

Balance transfer credit cards let you move high-interest debt to a new card with a 0% introductory rate. This allows you to carry a balance without interest for a fixed period, giving you a chance to pay it off more efficiently.

When it works:

• You have high-interest debt and can qualify for a balance transfer card.
• You use the breathing room to aggressively pay down your balance.

What to watch for:

• Watch out for balance transfer fees, typically around 3 to 5 percent.
• Avoid using the card for new purchases until the transferred balance is gone.

5. You’re Avoiding Higher-Cost Debt

In rare cases, it might make sense to carry a credit card balance if it helps you avoid even more expensive borrowing. For example, payday loans and auto title loans often have APRs in the triple digits. Even though credit card interest is high, it’s still cheaper than those alternatives.

When it works:

• You’re weighing two bad options and choosing the one that hurts less.
• You have a specific plan to get out of debt quickly.

What to watch for:

• Don’t fall into a debt spiral. Make the minimum payment at the very least and adjust your spending fast.