“Do I pay with cash or credit card?” That’s a question we’ve all asked at some point, save for those who don’t have a credit card in the first place. Which begs the question, when is it more fitting to use either of the two modes of payment?
There could be any number of scenarios depending on the nature of your transactions and individual personal preferences.
We’ve done the homework and singled out some three scenarios for this writeup. Read along to find out when it’s more fitting to use digital credit for purchases instead of cash.
There is always the risk of cyber theft when purchasing online. Fortunately for you, the buyer, there are laws and safeguards in place that protect you from liability in case of a credit transaction that goes wrong. This protection means that no money is ever coming out of your bank or pocket to foot a transaction that you don’t sanction.
Even more importantly, paying with digital credit also means that you have protection on items that you bought but never received or those that you received but disputed for whatever genuine reason (s).
Cash purchase, on the other hand, is a different ball game altogether. Once someone dupes you into making a fraudulent transaction and you lose your cash, it’s gone and you cannot recover it. You simply don’t have the same protection when shopping using cash.
Big ticket purchases
When buying big ticket items, the digital credit services such as ePayLater – Buy Now Pay Later allow you the privilege of spending that large amount without the inconvenience of carrying large amounts of cash around. Additionally, credit payment means that you can acquire the item now and pay for it over a period of time or in a couple of weeks.
When you use cash, you have to pay the whole amount upfront or put up with huge interests in case you enter into instalment arrangements. The good thing with credit is, you can avoid paying interest on your balance by simply paying the balance in full before expiry of the grace period.
Credit cards often attract rewards each time you swipe them, depending on the issuer’s policy. Normally, you have the chance to earn anywhere between 1 and 6 percent in rewards, subject to where you are shopping and the service you are using.
With this option therefore, you can rack up points if your service provider offers generous reward incentives, which you can then redeem for cash or other interesting perks including gift cards, hotel rooms and flights when you travel.
So, are you a credit savvy person? Have you been making the most of digital credit? If not, perhaps it’s time you started. Just be keen on paying your credit balance(s) fully in good time every month so you don’t accumulate balances that would hurt your experience down the line.