Most of the people fancy shopping and it is indeed satisfying to one’s heart. But our finances play a spoilsport to our shopping spirit. Even when the finance is not an issue, we choose to stick to a budget while shopping, however, this is not always possible. There is a continuous fight between our desire to shop more and affordability.
1. Availability Of Cash Is Restricted
Every time you use cash, it tends to limit your spending spree, but on the other hand, if you are having a credit card, you can splurge beyond your budget. If you are able to handle a credit card, then it is surely a boon. If you have a credit card, you can enjoy shopping and pay later. This way your cash does not get spent immediately.
I have a completely different point of view when it comes to credit cards. I am having a cash back credit card and it has only proved to be an advantageous financial tool for me. I agree, some people can’t handle credit cards, but then again there are also people who are using their credit cards responsibly. So, here are some benefits of using credit cards over cash.
Without a doubt, this is one of the key benefits of using a credit card. It is convenient to carry a credit card than a thick wad of cash in your wallet, don’t you think so? Whether you are making large purchases or smaller ones, a credit card does come handy. All it takes a swipe and your payments get processed.
If you have a credit card, you will have a safety of funds against any probable case of theft. If unfortunately, you lose your wallet, you will lose your cash forever. But, if you have misplaced your credit card, you can have a new one from your bank. In addition, a credit card does come with lost card coverage. This also protects your liability in case your card is used by someone else. Carrying a wad of cash is not safe but you can carry a credit card safely anywhere you want.
2. Ease Of Purchase
Let us assume, you are shopping and suddenly you realize that the cash is short, then in such a case, you have no other option but to avert shopping. If you are buying something important then such a situation can be quite frustrating. On the positive side, you don’t have to face such a situation if you are carrying a credit card. A credit card does have the benefit of buying everything and paying for it at a later date. If you can plan your purchases as per the billing cycle of your credit card, then you can enjoy buying everything early and pay for it later.
You don’t get to earn rewards every time you shop for any product or fuel purchase, but on the other hand, credit cards offer rewards points. You can use these reward points to redeem for gift vouchers and various other gifts. In addition, you also get to enjoy lucrative discounts at varied merchant outlets. When you make big purchases on your credit card, you not only get higher reward points, but you also have the provision of converting them into easy EMIs. With this conversion, you are able to make the payment easily. Well, I don’t have to mention that you don’t get to enjoy such benefits with cash.
4. Credit Score
When you have a credit card and you make your payments on time, it does help you build good credit score. A credit card is one of the best financial tools to build a good credit score. The best part is that the banks/financial institutions give preference to the people with good credit score while giving a loan at lower interest rates.
About Author :
Hi, my name is Ankita Dixit, I am 27 and I am a professional writer. I started writing from young age and most of my writing skills and knowledge are self taught. Currently, I am working as a professional writer at Paisa.co. I have write on various topics including travel, motivation, finance, technology, credit cards, insurance and entrepreneurship etc.