by Dawn Hawkins

Created on: September 04, 2009

There are great advantages to using a credit card over cash. It can depend on the type of credit card you have and the bank that holds the card. Although it isn't wise to run your credit card up to the limit, it can be good to use it once in a while for the extra benefits that it affords. Use your credit card wisely and you will reap the many rewards that come along with it.

Here are the advantages of using a credit card:

Online shopping- You can't pay cash when you shop online. You could send a check or money order, but it will take much longer for you to get your order. Using a credit card will get your order to you much faster. It will automatically be paid for online. The advantage of using credit cards for this reason means that your order will be on its way to you within days rather than having to wait more than two weeks for it.

Cash back- Many credit card companies offer the advantage of cash back on your purchases. That means that every time you make a purchase, you will get a reward of money into your account. The percentages vary for this reward program depending on what credit card and company that holds it. This is one of the biggest advantages of using a credit card over cash.

Better record keeping- Cash payments are much harder to keep track of than credit cards. Credit cards give you the advantage of monthly statements. With cash, you must rely on keeping the receipts if you want to keep track of your spending habits. With credit cards, keeping the monthly statement will allow you to go back and see the date that you purchased any product you wish to know about and how much you paid for it.

Charge backs- If there is an unauthorized charge to your account, you can have the bank charge it back to the company that charged your card. This is a great advantage is someone steals your credit card number and uses it. You don't have this advantage when it comes to cash. If someone steals your cash, there is no way to track it to the person who stole it.

If your wallet is stolen- If your wallet is stolen, you cash will be gone. Your credit cards will be also. The advantage of using credit cards is much clearer when all you have to do is call the credit card company and cancel the credit card before anyone gets the chance to use it. It can stop thieves from destroying your credit and from spending your money.

Using a credit card over cash gives you a greater peace of mind. The advantages far outweigh the disadvantages in the above cases. When someone tries to steal your credit card, you can put an automatic stop to its use. You also have the advantage of shopping online with greater ease. It sometimes pays to use a credit card.

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