 TITLE: How to Budget for One-Time Expenses CONTENT: Can One-Time Expenses Affect Your Credit?\n-----------------------------------------\nSimply paying a large amount once with money from your checking or savings account will not affect your credit. However, you could see an impact on your credit score if you put that large expense on a credit card. That's because the purchase would increase your credit utilization, which measures the amount of available credit you're using compared with your credit limit. Credit utilization is one of the most important factors in your credit scores, and the more of your credit limit you use, the higher your utilization will be.\nThis isn't a problem if you pay off the charge, and ideally your whole credit card balance, by the end of each month. But if you don't, you'll also pay interest on the balance that stays on your card the following month. That will make the expense even pricier, and will keep your credit utilization higher. Missing a payment will have the biggest negative impact on your credit score, so make sure that you're able to make a payment on your credit card at all.\nIt could make sense to use a credit card for a one-time expense if you have access to a credit card that provides generous rewards or a 0% interest promotional period on your credit card. When a card charges no interest during an introductory period, you'll be able to pay down the purchase over time without accruing any interest charges—as long as it's paid off before the promotional period ends, that is. END