Cash or Credit? How to Decide

These days, it seems like people are carrying around cash less than ever before The old joke about getting stuck behind the guy trying to pay for mints with a credit card doesn’t resonate anymore because everybody’s using a card! Of course, more often than not, people are using debit cards in this scenario and they work just like cash – which brings us to the matter at hand today

Which should you use: Cash or credit? First, it’s important to know when you won’t even have the option For instance, if you’re going to an event or venue that doesn’t accept credit or debit cards, boom: Better hit the ATM on your way! Otherwise, a good piece of advice is to carry around smaller amounts of cash maybe $20-$50, for use with small purchases or tips When it comes to credit cards, keep in mind that the type of card you have can dictate when it should be used If you have a good cashback or rewards card, for example, you can feel confident about using your card whenever and wherever you can, since you know you’ll get solid rewards each time As with any card, of course, just make sure you’re consistent in paying off your balance – or at least paying it down – each month

After all, one of the major benefits of using your credit card is – you guessed it! – building credit for those bigger purchases down the road So, if you do tend to carry a balance, then CardGuru recommends paying with cash so you don’t run that up too much even on small purchases, which can sneak up on you over time and cost you more money Thanks for watching! For more finance- and credit card-related content, be sure to bookmark CardGurucom