With COVID-19, it has made many of us reconsider carrying cash compared to a credit card.
Nowadays about half of consumers carry cash with them when making purchases. Many predict that eventually, we will be a cashless society. Although you may feel more comfortable carrying cash, there are many benefits to using a credit card.
1. Security
Even though you could lose your credit card, cash is easier to lose. In addition to having more pieces (bills), it also takes a lot more space in your wallet. If you lose your cash, it’s gone for good compared to a credit card where you can call your financial institution and get a new one.
Credit cards offer more protection compared to cash. If someone hacks your credit card, your credit union or bank will help recover this fraudulent spending, but if someone takes your cash it’s gone.
2. Consumer Protection
Once you make a purchase with cash, it is pretty much a done deal. If you’re dissatisfied, you will have to convince the seller you deserve a refund or exchange.
However, with a credit card, you are able to reverse a charge (also known as disputing it) if a merchant fails to deliver your order, sends unordered items, delivers damaged merchandise, or hits you with unauthorized charges.
3. Perks and Bonuses
Another benefit of having a credit card instead of cash is that with every dollar you spend, you may be able to get benefits and rewards. These benefits could be free hotel stays, airline trips, or cashback rebates.
4. Budgeting and Expense Tracking
If you want to look at your previous spending history, credit cards keep track of this both on paper and digitally. When compared to cash, you have to manually add up your receipts to determine how much you have spent. With credit cards, you will be able to track exactly where and when you made your purchases which will help you with record keeping.
Credit cards also make it easier to budget because your account can be linked to online apps that can help you determine how you spend your money and come up with a plan to save.
5. Cleanliness
Another reason why you may want to stop using cash is that it is dirty. Cash is constantly exchanging hands with people. This is especially important right now as we are trying to be cognizant of COVID-19 and not spreading that to others in addition to other unnecessary bacteria.
Do you need help choosing a credit card?
As we work together to get through these ever-changing times, let us know how we can help! We have credit card options available to help you with your purchases. Please give us a call at 800-835-3400 to speak with one of our Member Advisors, or visit us online at caminofcu.org for more information. We are here to help you on your financial journey.