Reasons to Use a Credit Card Instead of Cash

Some people are still resisting the movement toward using a credit card instead of cash. These people believe they are making a smart choice because this helps prevent incurring a debt. While this is true, there are many reasons to use a credit card instead of cash. And, with responsible spending habits, a credit card does not have to lead to an overwhelming amount of debt.

The most important reason for obtaining a credit card is to build a positive credit history. Using a credit card responsibly and paying your bills on time is the best way to build a positive credit history. In doing so, you will be able to more easily obtain loans and will be more likely to get a lower interest rate.

Credit cards are also better than cash because they offer purchase protection. All credit cards offer protection from unauthorized purchases. As such, you are only responsible for up to $50 worth of purchases if someone manages to get a hold of your credit card. Some cards even offer extra coverage that may protect you from having to repay any of the cost. With cash, on the other hand, all of the money is gone if it is lost or stolen.

Credit cards also usually have a number of other perks that are not associated with cash. For example, you may receive car rental insurance, roadside assistance, discounts on certain goods and services, or access to rewards programs – all for using a credit card instead of cash.

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To Pay or Not to Pay: Is it a Good Idea to Pay Your Taxes with Your Credit Card?
The Financial Dominance of the Credit Card Industry
Keeping Your Credit Card Safe
Traveling With Your Credit Card
A Look at Current Bankruptcy Laws
Fixing Mistakes on Your Credit Report
Flying With Credit Card Airline Miles
Get Stylish with Your Credit Card
Keeping Your Credit Report Clear
Modern Day Vending Machines
Using Pre-Paid Credit Cards for College Students
Making Sense of the Prime Rate
Protecting Your Credit Card Account Information
Reasons to Use a Credit Card Instead of Cash
Rising Minimum Payments: Friend or Foe?
Staying Out of Debt While Using a Credit Card
Pay Your Way Out of Debt with Your Tax Refund
Tips for Shopping Online With a Credit Card
Understanding Airline Miles Credit Cards
Understanding Cash Back Credit Cards
Understanding Prepaid Credit Cards
Understanding Rewards Credit Cards
Understanding Student Credit Cards
What to Look for in a Credit Card
What to Watch Out for in Pre-Paid Credit Cards