The argument of whether or not using credit cards is better than cash is continuous, especially considering the number of people in credit card debt and the amount of the funds involved. There are many benefits to using credit cards in terms of financial savings and convenience. Below are some of the benefits associated with credit card use as opposed to cash payments.


There are rewards associated with the use of credit cards and credit institutions use a number of incentives to lure people into getting credit cards. These incentives are usually used with the hope of the consumer accumulating more fees and interest charges than the rewards being paid. In order to be on the winning side, it is advised that consumers avoid interest and fees by paying off their entire balance monthly.

It is also advised that credit card users go for the best rewards for their unique lifestyle. For example, someone who travels a lot should go for a travel rewards credit card. There are a number of credit card rewards to choose from, depending on one’s preference. Some companies even give cash back rewards on each purchase and this makes it even easier to profit from rewards as you do not have to keep searching for specific rewards for your lifestyle.

Credit Score

This benefit of using a credit card is oblivious to most people as they are unaware that using a credit card or not using one can significantly affect their credit score. Not having a credit card or history means there is no way to score your credit and, ultimately, you end up with a low credit score. The effect of having a low credit score is usually not felt until one tries to apply for a mortgage or tries to get insurance. Insurers and lenders take a look at your credit score when deciding on your premiums and rates. This means you tend to get higher rates and premiums if you have a low credit score.


save time

Convenience is a simple fact but it is very important, especially when it comes to saving you time and money. Compare having to run to the ATM for every purchase or counting loads of money while standing in line, or even trying to count the exact cost of the purchase, to swiping your credit card at the point of purchase. Using a credit card can save you time and frustration.


Using cash is considered safe because it prevents incidents of hacking and identity theft. However, just as credit card companies can get their systems hacked, banks can also be vulnerable. Using a credit card remains the safest option for making payments, especially since many credit cards have built in fraud protection features and customers can easily get a refund in cases of fraudulent charges–much safer than using your mattress as a piggy bank.

An advantage of using a credit card is the ease of budgeting, as you can review your transaction history to see what spending needs to be cut back, and where you can afford to spend a little more.