Why I Refuse to Pay in Cash

Discover why credit cards may be a better option than cash.

Though many people consider using cash as the smart thing to do, that’s not necessarily the case. In fact, if you’re not using credit cards, you’re missing out on some huge benefits.

You don’t need to pay interest as long as you use your credit cards responsibly, and you can even get credit card benefits that many people don’t know about, such as a car rental insurance.

Click to read more about how one guy used points from his credit card to fund his honeymoon.

Here are five reasons I think you’ll want to do what I’ve done and ditch the cash in favor of your credit card.

1. Credit Card Rewards

Credit cards are known for their amazing rewards, whether it’s a signup bonus or cash back on purchases you’ve made. If you already plan on spending the money, you might as well put it on a credit card in order to get cash back or earn points, right? Many companies also allow users to pay their utility and electricity bills with their credit cards for no extra charge, so you might as well put those on your card, too.

Get Credit Card Perks

There are so many credit cards out there that give bonuses and rewards to frequent travelers, Amazon shoppers and even Uber riders. You may be surprised at everything you’ve been missing out on, once you start looking into all the options available.

Related: Best Credit Cards for Military Service Members

2. Not Building Credit

Your credit score is tremendously important for so many reasons. Landlords, employers and loan servicers often ask for credit scores to show the reliability of an individual. With a low credit score or no credit score at all, you may find it harder to get accepted for a house you applied for, or even a job.

Read: Best Credit Cards for Students

3. Taxes

If your job requires you to spend your personal money and needs to monitor your spending for tax reasons, purchasing things with cash can be troublesome. A credit card can be a reliable form of proof of a purchase and can help you keep track of expenses.

Get Credit Card Perks

4. Track Spending

Some people prefer to use cash instead of credit cards because they feel they’d overspend with a card. The solution here is simple. In order to not overspend, use a budgeting app like Mint or YNAB that will track all of your purchases. When you track your spending, you not only stay on budget, but you can start setting aside money into your savings, as well.

Using a credit card paired with a money-monitoring app can have an added benefit, too. It can help you see if there are categories in which you’re overspending (e.g., entertainment, dining, etc.). You wouldn’t be able to do this as easily if you spent with cash.

More on Using Apps: Let These Money-Saving Apps Do the Work For You

5. Protection

If you lose cash or your money somehow gets stolen, that money is gone forever. However, if you lose a credit card or someone steals it, or even if a business overcharges you, you can dispute those charges with your credit card company. A credit card gives you the chance to protect your money.

Get Credit Card Perks

Click to read more about the best credit cards if you want to travel.

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About the Author

Alexis Schroeder

Alexis Schroeder is the owner of FITnancials, a blog dedicated to serving women who want to achieve financial freedom and make money with a side hustle or remote job. In college, Alexis started a personal finance blog while paying off debt, while working several different side hustles to make money. With budgeting and side hustles, Alexis paid off over $40,000 of debt and now saves 40% of her income. Her blog made $80,000 in her senior year of college and she paid off her student loans in full the day she graduated. Most frequently on her Instagram and Facebook page, Alexis shares money-saving tips with fun infographic style photos. In her free time, she enjoys reading, crocheting, and hiking.

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