The argument about using a credit card versus cash has been going on for quite some time with no clear winner. Which payment method is better to use and in what instance? Paper or plastic? Let’s talk about some benefits of using a credit card over cash and why sometimes cash should be avoided and why credit cards make more sense than carrying cash?
If you prefer cash and pay cash for each and everything, you will always have to be sure that you carry enough cash on you which sometimes may not be practically possible. This means the hassle of stopping at each and every ATM to restock your pocket when your wallet is low on cash balance. Keeping track of your wallet at all times to avoid an embarrassing incident at a payment counter can be difficult. What more is that this convenience translates to online shopping as well! You can easily and conveniently shop online with a credit card instead of paying through cash. Again, even though cash on delivery is usually available with most online vendors, you will have to ensure you have cash handy at home or office for the delivery package. Sounds inconvenient right?
- Tracking expenses
Having a credit card makes it easier for you to track your transactions as well. Receipts are tiny in size, are easily misplaced and usually stay buried in the wallet or purse to collect dust and eventually fade. It is much more comfortable and convenient to have an online statement as a backup. Some credit card providers keep these receipts in their backup as well. If you ever misplace or lose old receipts, you can simply go online and print the copies of those old receipts while there are still available there. You can also track your expenses through a hard copy or a soft copy of your card statement, making it easier to manage your expenses.
- Travel Benefits
Using your credit card for traveling purposes can be very beneficial, that is if you have the right one for it. Credit card can give you extra free miles and you can avail huge discounts on booking hotels or tickets through your card as well. You can even get a free access to airport lounges and relax there while your flight is getting ready for departure. You cannot avail any of these benefits if you are paying for your travel through cash or a bank transfer.
- Better Exchange Rates
Traveling means now you need to exchange your currency for the currency of your impending visit. Getting your money exchanged at the airport or money exchanger can be a hassle and time consuming where you have to give your personal details and there is a limited amount you can get exchanged and that too at high rates! Using your credit can give you better exchange rates and it is more secure than carrying cash as well. You can easily swipe your card at most of the terminals internationally without having to worry about carrying foreign currency.
- Credit History
Each time you pay your bill on time, it develops a positive credit history, which in turn improves your credit worthiness. This credit history gives you better options in availing other loans from banks as well. When any loan or credit card is issued, the bank takes out an eCIB report of the person which indicates credit history of the person. A clean history means better capacity to obtain good and cheaper interest rates.
- Discounts and Bonuses
You can also avail discounts on outlets, service and restaurants up to 25%. Smart spending can help you spend more with less cash spent. You can also avail cash backs and bonuses from spending on your card, such as purchases against reward points which are points you accumulate on spending through your credit card.
- Retailer Requirements
For some transaction you are required to have a credit card. For example, if you want to rent a car, book a flight or a hotel room, shop online or more, you need to use credit/debit cards. If you are only a cash user and do not believe in credit card, you might have a hard time competing with the new era of building a sound credit history.
- Cash Doesn’t Offer Theft Protection
If you only carry paper notes and misplace your wallet, your only hope of getting it back is through someone turning it in. It is better to carry credit cards rather than cash to avoid pick pocketing or theft. If you lose your card, you can always ask for a claim which is not possible if you lose your cash. And if you avail wallet insurance through your credit card, you can also secure some of your cash too during a case of theft.
In conclusion, you might want to consider getting a card, even if it only for emergencies as no one knows when you might need it and the benefits just keep increasing every day from discounts to rewards points to ease in online shopping! So check out which card is the one for you on Karlocompare and enjoy peace of mind when it comes to your daily finances!