Why Credit Cards Are Better Than Cash

 

Kira Brecht

Do you still use cash for most purchases? Wake up! Using cash is so yesterday. Once upon a time people paid for everything with cash. Cash is becoming less popular and for good reasons. Now, credit cards are accepted nearly everywhere, in fact many people don’t carry any cash at all. Credit cards are safer, offer you protection from lost or stolen cards, and offer you perks. You can earn valuable rewards using credit cards and even get an interest-free loan in the form of a 0% intro APR offer. Cash can’t do that.

Here are 8 reasons why credit cards are better than cash.

1. You can earn valuable rewards.

The choice is yours. Credit card companies offer enticing rewards because they want your business. Do you want cash-back, miles or points for travel or long 0% intro interest? You get to choose.

2. Credit cards are safer.

If your cash is lost or stolen, it’s likely gone forever. If you lose your credit card, simply call the company and they will mail a replacement. (Some companies will even overnight a new card for free). Plus, most credit card company’s offer $0 fraud liability, which reduces your risk to unauthorized charges in the event of theft to zero.

Using a debit card is like paying with cash. And, debit cards don’t come with the same protections that credit cards do. It’s no contest. Credit cards beat cash and debit cards hands down in terms of safety.

 

3. Track your spending.

Credit cards give you a record of how you spend your money each month. That’s a valuable budgeting tool. You can see exactly where your money is going, which is hard to do with cash.

4. Improve your credit score.

Credit cards are a great way to build your credit history. Your credit score can determine the rate you pay on a mortgage or car loan. The higher your score, the better your terms. The only way to build credit is to use credit. Using cash does not help build your credit score.

5. Get long 0% intro APR.

If you’ve got a big purchase coming up that you need to finance, there are credit cards that offer long 0% intro interest periods. That means you can make a big purchase and take up to a year or even longer to pay off the balance without worrying about interest piling up. Cash can’t do that.

6. Save money with valuable perks.

Credit cards offer valuable perks including first checked bag flies free, rental car insurance, or purchase protection policies. Some credit cards will refund you the difference on a new purchase if a lower price is found. Cash can’t do that.

7. Cash is dirty.

Literally, cash is dirty. Researchers have found hundreds of types of bacteria on dollar bills. It’s true. Just think, how many people have touched that $5 in your pocket right now? And, did they wash their hands first?

8. Credit cards can help you get out of debt.

If you are carrying high-interest credit card debt, switching to a card with a long 0% intro rate can save you literally hundreds of dollars in interest. Transfer your high interest debt to a new card with a 12-month 0% intro APR balance transfer offer and every penny of your payment will go toward paying down your debt for a year.