Cash or Credit Card?

Cash or credit card? Both offer conveniences.

Depending on the person, one may prefer credit card over cash. However, one route may be financially safer than the other. So, which one do you choose? Here are the two broken down to help you make your choice.


If you have both cash and your credit card on you, which do you choose? If you paid off your card in full the month prior, then you may want to consider putting the expense on your credit card. However, if you have a high balance on your credit card and you are creeping up on your due date, then you might want to take the cash route. You may find yourself falling into debt if you continue to swipe your credit card or get close to exceeding your credit limit.

Keep in mind, if you are paying for a product that is on sale with your credit card and you don’t pay your card in full that month, then you will end up paying more in interest and losing the sale. Don’t make this mistake!


If you like to carry cash on you at all times, consider heading down to the ATM at the beginning of each week. This way, you can have the option whether you want to choose cash or charge your card. If you carry a limited number of cash on you and leave your debit and credit card at home, then you will be less at risk to fall into debt and you will have a better understanding of what you are spending (since you will have the exact amount of cash on you that you budgeted for).

If the ATM is too much of a hike and you choose to use your credit card all week, then make sure you are checking your credit card statement at the end of each month. Stay on top of your expenses and make sure everything on your statement is correct. You don’t want to become a victim of fraud.

Credit History

Carrying cash on you can be a better option to avoid paying interest back every month, however it won’t boost up your credit score. If you use your credit card wisely and pay it on time every month, then you will be on the road to having a great credit history. Remember, a credit score and good credit history is important to obtain a positive financial future. If you only use cash all the time and never boost your credit, then you may not be able to obtain that car loan you needed or new apartment.


Having both cash and a credit card can be super important for your safety. You may come into a situation where it’s cash-only – this could even be an emergency where you need to get somewhere and your taxi doesn’t accept credit cards. Don’t fall into this situation. Always carry cash as a back-up, even if you don’t plan on using it. Your credit card can also have your back when it comes to insurance. For example, if you are traveling and need a rental car, your card could cover if you were to get into an accident. Call your provider to ask about this before traveling.


If you budget and use a pre-determined amount of cash each week, then you will find yourself on the road to “financial freedom.” However, it is still important to maintain a good credit history. Consider using your credit card for essential expenses only (groceries, rent) and pay off the full amount each month. This way, you will be debt-free and be on top of your financial situation.

So, which is the better option cash or credit? There is no real answer! Choosing cash or a credit card can depend on where you are and what you’re doing. Which do you prefer? Leave us your comments below!

Share on FacebookShare on Google+Tweet about this on TwitterPin on PinterestShare on LinkedIn

Leave a Reply

Your email address will not be published.

Call Us Now to Get Started

(866) 890-7337

What People Have to Say

I just wanted to thank your entire staff at The Law Offices of Leslie H. Tayne, for helping me get out of debt. If it wasn’t for your firm, I would have never been able to resolve my $13k worth of debt in less than 3 years. Your staff did a great job, I was finally able to buy myself a brand new car without using a cosigner. I can’t tell you again how happy I am. I would recommend your services to anyone.

L.C. Client 2007-2009

I sleep like a baby at night now because of the work that you and your office have done. Rest assured that I will refer anyone I know to your office with conditions that are similarly circumstanced.

R.S. Client 2012-2014

You have been very helpful at first directing me in the right direction when I had no clue how to go about handling everything, I really appreciated all your advice and help and hope we can work something out. Thanks again for all your help and kind words, and patience.

D.M. Client 2009-2012