Cash or credit – advantages of paying with your plastic

If you are one of the millions of people who would always argue for the advantage of settling your bills with cash rather then using plastic, perhaps it’s time for you to have second thoughts about it. Contrary to popular belief, there’s a lot to gain from using your card in daily transactions. The trick is to know what to look for and start shopping around for the best deal that suits your needs.




When it comes to praising a credit card, one obvious perk springs to mind immediately. It’s the convenience of not having to carry cash around. With the majority of places now accepting some sort of plastic, daily card swiping has become an almost indispensable part of our lives. And it’s safer too! For those sceptically-minded let us recount that while the lost cash is almost irrecoverable, missing cards can be reported and cancelled immediately. If your plastic has fallen into wrong hands all you have to do is to inform your credit card provider who, in turn, will block the card and refund any fraudulent transactions.

Paying with a credit card also means that protection under the Consumer Credit Act is available. When a purchase is completed the contract made is with both the retailer and the credit card company. This means that the both parties have liability if something goes wrong. For instance, if there is a delivery damage or loss of your item an action will be needed to rectify the problem. Note that for this protection to be applicable, the contract price must be over a certain amount.




A very similar policy applies when you buy an airline ticket or a holiday package using your credit card, but additionally you will get free travel insurance on top of it. Surely peace of mind is worth a small monthly fee? It is also your best bet against cancelled flights or disruptions you may encounter while travelling.




Last but not least, you can harness the power of credit card for your credit building purposes. Your credit score and credit card use are closely intertwined, with both effecting each other profoundly. The way you use your card can affect your credit rating for good or for ill. As credit cards require you to pay off balances and fees each month, you will be able to prove to financial institutions that you can handle the debt in a responsible fashion. Use this tactic to enhance your credit history.




Regardless of what your circumstances might be, using a credit card will always give you some advantage over traditional methods of payment like cash or debit card transactions. Follow this advice and make your cards work for you.