• When to Use Credit over Cash

    When it comes to conducting transactions, nothing can replace the practicality of cash but there are a few moments in time when plastic truly outweighs the benefits of paper. Albeit plastic is frowned upon due to the large misconception of creating debts, plastic does have its benefits. The misconception about credit cards come largely due to mismanagement of finances and the article below explains how credit cards can actually be better than cash in certain situations

    Convenience of transactions:

    Using cash only can limit your expenses but figuring out where it all went becomes a hassle and requires the disciplined use of a ledger to record every transaction and collection of receipts to see how much was spent. Whereas credit cards bring with it, the added advantage of transaction statements. These statements track every expense charged to the card and keeping a track of these expenses and trying to weed out the unnecessary ones are the trademark of a wise spender. The use of a credit card also guarantees that you do not need to stand in a long queue at the ATM which can be especially helpful during times of emergencies. Most merchants like airlines or hotels prefer the use of cards over cash due to its convenience. The biggest convenience factor of credit cards is the fact that it can be kept safer than a large wad of cash. A slim wallet is less likely to attract the wrong kind of attention as compared to a wallet that’s bursting at the seams. A stolen card can be reported and blocked whereas stolen cash is money lost.

    Ensure a Good Credit Score:

    A credit score or rating that is high ensures a successful approval of a loan especially during times of taking out a home loan or personal loan. It is the benchmark used by banks to figure out if a potential buyer is a good paymaster or not. When one uses only cash, banks do not get a clear picture of how good a person is with their expenses. Having no credit score is just as bad as having a bad score. Credit cards when utilized correctly through proper on time payments help boost one’s credit rating.

    Leeway on purchases:

    When using cash one has to make full payments on a purchase. This means that at times f a particular expense pops up the person may have to dip into their savings but when one uses a card, they can make payments on the spot without dipping into their savings and if repaid before the grace period of 20 days incur no added interest charges. Larger purchases can also be converted into easy payment plans that break it up into smaller instalments at lower interest rates and sometimes, depending on the bank, can even offer 0% interest rates.


    Almost every bank in the market offer credit cards that are tailored for a specific use. Certain cards offer cash back on everyday expenses whereas certain cards target the frequent business traveller and offer travel benefits such as travel insurance or access to airport lounges. Many people sign up for cards to reap the benefits offered. Cards offer reward points on expenses charged which can be collected and redeemed for exciting gifts, some cards even offer cash back on expenses incurred thereby giving the cardholder the maximum for their money spent which cannot be achieved when using only cash

    Credit Cards are Accepted Worldwide:

    Gone are the days where one has to haggle for the best foreign exchange rates. Cards are now accepted the world over and travelling without a card is like travelling without any money. Moreover, certain cards double their benefits when used overseas thereby trumping the use of plain old cash. No more worrying about foreign currency or carrying the right denominations or the right amount.

    Credit Cards
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