Credit vs Cash
Many people are unwilling to use credit cards because they are afraid of the interest. However, if you manage your credit wisely, there is no need to fear it. Using credit cards is more beneficial than cash not only because they are safer and much more secure, but it's less hassle. With credit cards you can earn rewards, build your credit, pay bills easier, and all without a trip to the bank!
The most important reason to choose credit cards over cash is for the safety and security. If you carry cash, you run the risk of having it stolen, and can never be reimbursed. Although, if you carry credit cards and they are stolen, a simple phone call to your card provider is all that is necessary. Your credit card provider will place a hold on the account in question and will prevent any further fraudulent charges. Fraudulent charges will be returned to you after they are investigated by your provider. You old account will be closed, a new account opened for you, and a brand new credit card will be issued in the mail.
With the busy world we are living in, convenience is very valuable. Credit cards allow you to make purchases without having to go to the ATM, and you save money because you don't have ATM fees with every withdrawal. You can also use your credit cards to pay bills online without even leaving your home, saving you time and a stamp. Many utility companies allow you to pay your bill through their website. And as with most websites online, you will need a credit card to make purchases.
Everyone has emergencies, but most of the time, emergencies don't wait for payday to come. If you're on a low budget, it is hard to plan for unexpected events. If for instance your vehicle breaks down, but you don't have enough money in the bank to cover the cost to repair it, and your payday is still a few days away, a credit card would be useful.
It is becoming even more significant to have a decent credit score to finance the purchase of houses and cars. If you make most of your purchases with cash, then you won't be contributing to your credit score. Using credit cards and paying them off on time can help build your score, and in the long run, save you money on interest rates.
Besides all the benefits we have discussed, some credit cards will also give you various rewards. As there are many different rewards to choose from, it is best to choose one that fits your lifestyle. If you have an occupation that requires you to travel or you take frequent family vacations, then obviously you would want the credit cards that turn a percentage of your purchases into flying miles. There are also credit cards that offer you a percentage of cash back on what you spend on the card, or even free gas.
And that is why if you are a responsible user, then there are no risks, only benefits to credit cards.