Credit Cards are better than Cash

by Krantcents

Assuming you can stay disciplined and not carry a burden of credit card debt and pay high amounts of interest, using a credit card has many advantages of using cash/debit card.  Whether you enjoy the rewards, having one bill to pay each month, credit cards can get a bad reputation, but they are definitely not all bad.

Rewards are Free Money

Using credit for all monthly bills such as utilities, phone, cable, as well as expenses such as grocery, gas, and entertainment can help to add up your rewards, however monthly payments such as mortgages or car loans usually cannot be paid with a credit card, only through bank accounts.  Cards can offer rewards from 1-3% cashback on purchases, or accumulate a point balance that can be redeemed for gift cards.  The always popular airline miles card still exist, even offering free checked baggage as well, which could bring savings up to $35 each way.

Almost Too Many to List

Sometimes the benefits of using credit cards do not come in the form of money, still getting more in return than what cash/debit cards can provide.  Sometimes making large household purchases such as appliances with credit cards can add extended warranties.  Credit cards offer purchase protection, which can get credited to your account if there are any fraudulent purchases.  Some cards offer programs that if there are price drops of an item purchased within a certain time you can receive the difference in price change.  Even using a credit card to check into a hotel or rent a car can be a lot easier on the bank account, as using a debit card can tie up holds on the account for up to a week until it is cleared with the bank.  If you are traveling to another country, your credit card is widely accepted and as long as you give them a heads up, should not have any trouble making purchases.

Stay on Track

While ditching cash for credit cards has its benefits, it could be easy to sink into debt if only using plastic.  With high credit available, going on endless shopping sprees could be tempting, but it is very important to spend within your limits and have a budget.  It takes discipline, but in order to not rack up credit card debt and pay high amounts of interest every month, barely chipping away at the balance, you have to spend responsible.  Pay attention to your budget, remove any unnecessary spending, and contribute as much as you can to your savings accounts.

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