Why Using Credit Cards Over Cash in 2023 is Better

advantages of using credit cards

While you must use your credit cards responsibly to avoid reckless spending and resulting debt traps, there is no denying that credit cards are useful and represent a viable alternative to cash in 2023. A quick look at the primary advantages of using credit cards compared to cash.  

#1 Convenience 

If you have a credit card in your wallet, you have all the spending power you need without the inconvenience of having to carry a large amount of cash. You can not only buy big-ticket items easily but also indulge in impulse buying if you take a sudden fancy to something. Also, by using credit cards, you get the convenience of being able to enjoy now and pay later at your convenience. Further, if you pay off your dues in full by the due date, you don’t have to pay any interest at all.

#2 Additional Purchasing Power

If you use cash, you can only spend what you have with you. However, by using a credit card like the Firestone card, you can access credit which allows you to spend on something even if you do not have the funds in your possession. Because of the additional purchasing power in your hands, you can afford to spend more without the risk of lugging around large amounts of cash.   

Additional Purchasing Power

#3 More Security 

Regardless of whether you drop your wallet carelessly or get mugged on the subway, once you lose your cash that is generally the end of the story. However, in the case of credit cards, if you do misplace them, you can report them so that they can be immediately blocked. The card issuer will issue a fresh card to you. According to a Forbes report, e-commerce fraud where the cards are physically not present is on the rise. To counter this, most card issuers not only offer fraud protection to their cardholders but also purchase protection that secures you from items received in a damaged condition or never received at all. If you use cash and run into a problem, there’s nothing you can do but take it up with the merchant.

#4 Rewards and Cashback

Most credit cards have a reward program that gives users a specified number of points calculated on the value of the transactions charged to the card. These points can be redeemed against select merchandise, airline miles, stays at hotels, and more. Many cards also offer a certain percentage of the amount charged to the card as a cashback that you can accumulate to pay off your card dues. Even if you have the ready cash to pay for your purchases, it can be better to use your card so that you earn the reward points and the cashback. 



Using credit cards has several advantages, however, you must ensure that you use them responsibly and only to the extent that you can manage to pay your dues on time, otherwise, it can be very expensive. In addition to the convenience, reward points, extra security, by using your credit card responsibly, you can build your credit profile and improve your credit score, making it easier for you to access credit when you need it.

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