1. Keeping Track
If you pay with cash, most times you’ll only get a paper receipt with your payment. If you lose this receipt, any record of your purchase could be gone without a trace. While many establishments are beginning to offer email receipts, not all businesses follow this trend. With credit, you’ll be able to keep track of your purchases not only with your paper receipt, but also with your credit card statements.
2. Building and Earning
In terms of building credit, paying with cash is unfortunately not going to do you any good. If you’re able to pay in cash, use your credit card instead, and pay it off immediately. Doing this will help to increase your credit score by logging positive payment history, which will be reported to the credit bureaus. You’ll also avoid any interest when you pay your purchases off immediately, since you won’t be carrying a balance from month-to-month. Also, if you’re good at paying off your credit card right away, look into credit cards that offer cash back on purchases.
Credit card transactions are usually faster than counting out bills. A quick swipe and you’re on your way. If you are a traveler, you’ll be relieved to know that many credit cards are capable of international transactions. This way, you won’t have to worry about doing currency exchanges before your vacation overseas. Whether you have a stack of money to sift through, or you’re short a few dollars, your credit card is always going to come in handy. Of course, when using a credit card, you want to spend wisely. Making purchases with a credit card is not a free-for-all option to buy things you’d never be able to afford otherwise.
When it comes to cash and credit, which option is best for you?