Top four reasons credit cards are better than cash

SEATTLE, USA: Consumers are propositioned numerous times throughout the day with how best to pay for purchases.

With the amount of transactions that the average consumer participates in daily, and comparable number of payment possibilities at hand, it's no wonder that buyers weigh the benefits and disadvantages of each tender-type available. Today, Creditnet.com announced the top 4 reasons that shoppers should consider credit cards in lieu of traditional cash.

Security: Credit card transactions offer an added layer of protection that shoppers lose altogether when they pay with simple cash. A line of credit now, more often than not, extends zero fraud liability to the card holder.

Essentially, any suspicious charges made to an account can be quickly credited back so that the buyer doesn't incur loss for fraudulent activity. Stolen cash on the other hand goes unprotected and is less apt to be recovered in the event of theft.

Moreover, if a dispute arises between the buyer and seller, credit transactions can be assessed by the credit card company in order to decide whether or not a buyer is entitled to a refund, regardless of seller policy, when appropriate.

Convenience: Using a credit card is often more convenient that obtaining cash for routine purchases. With advancing technology, online banking and even direct-deposit of payroll income, more and more consumers manage the bulk of their finances electronically.

In order to get cash, consumers must visit a bank, incur ATM fees or locate in-network money machines in order to make a withdrawal. Cash can also be dangerous to carry in large amounts, making certain transactions difficult if they require a large sum of cash.

Access to shopping records: As long as items are purchased with a credit card, many retail locations can pull up buyer-history in the event a shopper needs to make a return and cannot locate a purchase receipt. Electronic shopping records are an excellent resource for warranty items and large ticket purchases like electronics and appliances that can require exchange or replacement later on down the line.

Improved credit: One of the most prevalent reasons to pay with a credit card instead of cash comes down to managing personal credit. Every individual has a credit score that determines what interest percentage or borrowing terms they are eligible for based on repayment history. Achieving a good credit score requires on-time bill payment and diligent balance of extended credit versus revolving amount.

Using credit cards for routine purchases that cash has already been allocated for, makes actively using a credit card a smart idea because it establishes buyer history, keeps a personal credit score active (around 30% used is ideal) and supports length of credit so that lenders have appropriate information to approve future borrowing.

Making smart money decisions like using a credit card to pay for everyday purchases instead of cash allows consumers to stay on budget, visually interpret spending trends and enjoy credit-card rewards,such as cash-back and travel incentives. Credit improves with each transaction so the more they are used, the better credit becomes over time.

Many consumers experience how frustrating it can be to handover a reasonably sized bill only to be declined for the merchants inability to produce change. Credit cards allow shoppers to spend only what they need and enjoy the security of a secure, protected transaction each and every time.