Are credit cards better than using cash?

Question asked by: knowitall

Yes it is better to pay using credit cards rather than through cash transactions if, and only if, you pay your balance off in full every month.

This is because you get an interest free period to pay off the money which is usually between 45 and 60 days - up until the statement and the payment date.

Therefore you keep your hard earned money for longer before handing it over giving you more chance to earn interest on it.

This is particularly useful with purchases that cost several thousand as you have extra time to earn interest on that large sum of money.
By: Unknown
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I do not agree that credit cards are better than cash because the worst part is people never realize how much money they are spending – unless they are really careful about their finances. The swipe of the credit card is fast and simple, but by paying for things with cash, people become more aware of their spending habits.
By: fdisale

Date of comment: Tue, Nov 24th 2009

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