Which Is Better: Cash Or Credit Card

Which Is Better: Cash Or Credit Card

When it comes to the debate on whether using cash or credit is better the answer lies entirely in your personal preferences and your personality as both have advantages and drawbacks. Credit cards can be easy and quick, but cash is straightforward.
Here's the case for each so you can decide which payment method is best for you:


Keep Tabs on What You're Spending
With a credit card it's super easy to just keep charging to it because you won't see how much you've really spent until the end of the month when that dreaded bill comes. Always using cash means you'll know exactly what you're spending as you watch it dwindle in your wallet. Setting yourself a spending limit is much easier with cash as when you run out of what you brought with you, you're done shopping.

No Interest on Purchases
With credit there's a very large chance that you'll end up paying interest on the things you purchase which will inevitably make them more expensive than if you'd just paid with cash. Of course, this is avoidable by paying off the full balance on your credit card every month, but many times that is much easier said than done. With cash you don't have to worry about any later payments.

Accepted Everywhere
With cash you never have to worry about going somewhere and running into the problem of not being able to pay because your payment choice isn't accepted. Every business accepts cash and some tend to prefer it. In some places, such as some gas stations, purchasing with cash also gets you a little discount as the company then doesn't have to worry about paying fees to credit card companies.


Building Credit
Building good credit is very important if you have dreams of one day buying a car or a house or even if you want to take out a loan or have utilities in your name. The only way for you to build good credit is to use credit and show that you are responsible by always paying your bills on time.

Unfortunately for cash there isn't any real world added rewards to using it, unlike with a credit card which can come with many sorts of different rewards. If you're looking to build airmiles or earn some cashback then finding a credit card company with a good rewards program shouldn't be too difficult. It'll feel good to know that every time you make a purchase you're earning in another way.

Theft/Loss Protection
If someone steals your wallet or you misplace it, the cash in it is gone forever. There's no security blanket for cash, but with your credit cards all you'll have to do is call up your company and report the loss. They'll cancel your card, send you a new one, and, with many companies, you won't be held liable for purchases that were made on the card by the person who stole it. If someone uses the card before you've reported the loss you can legally only be held liable for up to $50 worth of purchases.