5 Reasons Why Credit Cards Are Better Than Cash

Credit cards bring such ease and convenience to people’s lives. Gone are the days of handling bundles of cash in pockets whenever you step outside. Credit cards have brought so much change to the way people conduct their financial transactions nowadays. Credit cards have come a long way since their inception in the 1950s. Nevertheless, credit cards have evolved so much there are still various orthodox opinions about credit cards that exist in India. Therefore in this article, we stated some reasons to challenge the orthodox beliefs and why it is better to apply for a credit card.

#1 Secure Transactions 

The most obvious reason to shift to a credit card from cash is the level of security that comes with the credit card. You always need to carry a large sum of cash in your wallets whenever you tend to leave your house. It is such a hassle and risk involved in carrying cash around with yourself wherever you go. But with credit cards is much easier as all you need is a plastic card with a magnetic chip and you are all set. 

#2 Rewards And Special Perks 

The credit card comes with several incentives and exclusive perks for the cardholders. Whenever you use a credit card to make a purchase, you get rewarded with rewards points, cashback, and air miles. Whereas, you do not get such benefits from using cash. Say, for instance, you get up to 5% cashback with shopping on Amazon, which is one of the best cashback credit cards in India.

#3 To Build Credit 

One of the most important reasons why you should own a credit card is that it will certainly help you build your Credit history. Banks tend to give credit to the customers based on their creditworthiness. Therefore, in order to avail loan, you need to have a good credit background because banks do not give credit to customers with no credit history. Hence, it is important to have a credit card. 

#4 Purchase Protection 

Credit cards offer purchase protection to the customers which isn’t the case with cash. You get an extended warranty on your purchases with a credit card. Therefore, you can easily replace the item you have purchased using your credit card if it is defective or damaged in any case. You do not get such protection offered on your purchases using cash. 

#5 Limited Liability  

If you accidentally misplace or lose your cash then in that case you shall be liable and the bearer of such loss. But this isn’t the case with a credit card. In case if you misplace your credit card and any unauthorized on your account, you can report the bank within a reasonable time. You shall not be liable for those unauthorized transactions on your account. 

Bottomline

If you find the above-mentioned points convincing enough, you should apply for a credit card as soon as possible. There are certainly a lot of benefits associated with credit cards that cash simply can not compete with a credit card. To summarize, credit cards are great tools to achieve your financial goals. But in the end, it is all about choosing whatever suits your needs and requirements well.