8 Reasons Why I prefer credit cards over Cash

vida_master.bmpI know most pf bloggers would disagree with me on this one but I actually think that carrying credit cards instead of cash will save you more money. I actually have been experimenting over the past few month on what I prefer over carrying over the two.

For one period of time, I went living only on cash and cash only. So that means no credit cards, no debit cards, no plastic. I would go to the ATM once a week, to my own bank to avoid the ATM fees, and take out 40 bucks and that would be it for that week.

After trying the cash method, I then went on to try carrying only credit cards and debit cards. I found this method to be a lot more effective, not only in saving money but also keeping my self organized.

Here is a list I gathered from my experiment which gives all the reasons why credit cards are better to carry then cash.

  • I don’t know if it’s just me but when I see cash in my wallet, it’s more appealing to spend it. I would make a decision on what to buy based on how many ones I had.
  • When you use your credit card, you don’t have to worry about getting change, you get charged for the exact amount and you don’t have to worry about what to do with the “leftover” cash.
  • If you like to hold on to your receipts to keep track of your finances, it is a lot easier to keep them organized when you have everything listed online from the use of credit/debt cards. This was a huge factor for me.
  • When you carry cash, you’ll end up getting a lot of lose change and for the most part, people don’t save them. They scatter and gets lost.
  • Carrying lose change is easy to lose track of and hard to manage. Especially when you’re on the go.
  • As lazy as it may sound, when using your card you don’t have to worry about counting your money, just pick and swipe. :)
  • With all the rewards and promotions credit cards companies have to offer these days you can get great deals on flyer miles and even redeem points for household appliances.
  • When using your credit card, you can also be improving your credit score at the same time.

 So there you have it. I gave you 8 reasons why credit cards are better than cash. It’s true that there are also reasons for why cash is better than credit cards also but overall I still think that credit cards is the way to shop. GO PLASTIC!

  1. I complete agree with your conclusions about cash vs card. When I get cash out via the ATM or at a grocery store, I have more trouble remembering exactly how much I spent when it’s time to reconcile it in Quicken.

    I could track my expenditures in a notebook, but that’s just one more reason I use a credit card. They do it for me. And I pay off my balance each month anyway.

  2. I agree and to add some information. If you are using a credit card you are earning interest the entire month with the money you would have been using. If you pay off the entire balance at the end of the month you make money period.

  3. Trying to get any kind of credit when you have a bad credit record is very difficult. It seems more and more people are giving up and getting payday loans. I find myself wondering if the fat cats at the stock exchanges know they are screwing up the economy.

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