While it is true that both credit cards and cash payments offer various and plentiful different pros and cons, one of them will ultimately have to be chosen as the ‘better’ form of payment in today’s world! In certain circumstances, however, you may be inclined to choose one or the other, as is with most things. With this having been said, here is a list of the pros and cons of having cash or credit card (or debit card) payments as your primary source of ‘exporting’ money.
If you have both on you, which is what we recommend, they can be entirely equivalent in use as well as take into account the convenience factor. However, using a credit card can be more convenient if you are not known to carry a lot of cash. For one thing, if you were to be robbed or if you lost your wallet, you would suffer almost no repercussions, financially that is. You can quickly call up your local program or bank and have them cancel your card and send you a new one within the week.
On the one hand, credit cards offer you the ability to ‘pay’ for your purchase up front, and not actually have to pay for it for days, weeks, or even months* down the road. However, this can be somewhat of a trap. If you are irresponsible with your credit card spending, you can end up abusing your credit card and getting yourself or your friends into a lot of debt as well as trouble, and maybe even legal trouble.
As we have previously mentioned in the paragraph (or two) above, using credit and debit cards (as well as checking cards for bank accounts) is generally much safer than carrying around cash. In the sense that, of course, you either are robbed, lose, misplace, or cannot seem to find your wallet! You can cancel your credit and debit cards as easy as one-two-three and be back into the swing of things relatively soon after!
The issue with carrying around a lot of cash is the exact polar opposite as what we have mentioned above. If you end up carrying one, two, three or more hundred dollars in your wallet and then losing it or ending up having it stolen, you are that much money down, and you have less than a slim chance of ever getting any of it back.
Cash is certainly cheaper to use than a credit card is, because of the bi-weekly, monthly, or yearly fees that are associated with registering for and responsibly as well as legally owning your credit card. With cash, you are only using your hard-earned dough to pay face value what you see. With credit cards, aside from all of the previously stated pros and cons, there is always a set amount of fees and other transaction costs that come along with it as a package deal.