If You’re Still Paying With Cash, Stop. Credit Cards Are Better In Every Way

For as many years as I can remember I’ve heard the phrase “cash is king,” but I don’t believe that’s really telling the whole story anymore. Cash may be great for some things, but making purchases, especially larger ones, is not one of them as credit cards offer more protection and bigger benefits. 

There was a time, before credit cards, when the idea of not paying something off immediately might have felt a little too crazy. However, when you consider why credit cards are so broadly used compared to cash, it’s almost a no-brainer to make all your purchases with plastic. 

According to the 10th edition of the Worldpay Global Payments Report, released in March 2025, cash use declined 44% between 2014 and 2024, which means it’s only used in 15% of all in-store transactions. Credit card rewards are undoubtedly playing a role in people dropping cash for plastic. 

Best Reasons To Use Credit Cards

More Convenient 

It should go without saying that one of the reasons credit cards are so broadly used these days is that they are more convenient. You likely always have a credit card with you, but cash is no longer as common. Yes, ATMs are plentiful, but cash is thicker in your pocket, and you might also have to carry around loose change after every purchase. 

If you want to get really minimal, you can make every purchase on just one or two credit cards, which minimizes precisely what you need for your everyday carry. Add a credit card, a license, and maybe a debit card, just in case, leaving you with a thin wallet far from the bi-fold days when wallets were two inches thick. 

Building Up Credit

Unfortunately, this reason is largely overlooked though it should arguably be the most important reason to start using credit cards early on. If you ever want to make a large purchase, specifically a house or car, a bank is unlikely to give you any loan without a pre-established credit history. 

To establish this history, you’ll want to show that you not only have credit cards but are using them responsibly. This could mean not carrying balances or paying off balances quickly, never making late payments, and not constantly applying for new cards. 

It’s hard to argue any instance in which cash will help you build up credit. Cash purchases don’t go on your credit history and companies like Experian, Equifax, and TransUnion aren’t worried about the cash purchases you’re making regardless. 

Better Safety

Here’s the cold reality: If something happened to you on the street, like being robbed, your cash would likely be gone forever. If the same thing happens with a credit card, worst case, someone might be able to make a purchase or two before you get an opportunity to cancel the card. 

However, credit card companies are exceptionally good at knowing when fraudulent purchases happen. If you report any loss or theft immediately, the credit card company will remove those fraudulent purchases from your account. 

Even with checks, you lack the safety of a credit card and the knowledge that if something goes wrong, the bank might help you, but it will take time. On the other hand, removing a charge from a credit card account can be done instantly or within 24 hours, giving you this free balance back to go shopping. 

So Many Rewards

If you stopped for a minute and tried to find where you can get rewards for making a cash purchase, you’ll be hard pressed to find any. You might find some places that will charge you a small percentage fee for using a credit card, favoring cash instead, but these instances are far and few between. 

Instead, credit cards offer perks and rewards that have become so hard to ignore that it is a wonder why anyone would want to use cash. This is especially true when you consider cash-back reward cards, like Capital One Quicksilver, which gives you 1.5% cash back on every purchase. 

This means that for every $1,000 you spend, you earn $15 in free money from Capital One, with no strings attached. Can you think of any instance where someone does this kind of rewards program with cash? 

The best part is that rewards credit cards extend beyond just cash back. You can also get other benefits like an extended warranty on purchases, purchase protection, trip cancellation, roadside assistance, and even concierge services. Are you having trouble finding tickets to a popular concert? Call your Visa or Mastercard concierge service if one is offered with your credit card, and they can help you track down available tickets. 

There is no scenario in which you will receive anywhere near the same benefits with cash payments. 

Tracking Spending

One final significant benefit of choosing credit over cash is that you can track your spending down to the penny using credit card services or apps like You Need A Budget. With cash, you are solely responsible for creating a paper log or list of how much you have spent and on what. With a credit card, all of this tracking is done for you and you’ll even get a breakdown of what categories you are spending too much in, like streaming services, which might save you money by cutting one of these services loose. 

Contactless Payments

Another major advantage that is growing in popularity every year is the rise of contactless payments. These are better known as Apple Pay, Google Pay, and Samsung Pay, and they couldn’t be any easier. Just tap your phone, and voila, the payment has been made, and you are on your way. 

I cannot wait for contactless payments to become as widespread and available as credit cards are today. The thought of not carrying anything but my driver’s license and a phone is a future I am ready for. 

One of the biggest benefits of going contactless is that tap-to-pay is one of the safest ways to pay, even more so than physical credit cards. The chips in your smartphones or smartwatches will help protect you against fraudulent transactions. 

Not only are they safer and more minimal, but tapping-to-pay is about as easy as it gets to make a payment. When you check out somewhere, there is a good chance your smartphone is already in your hand. This means you don’t have to fumble around counting cash or worry about which PIN goes with which credit card. 

How To Not Overspend

There is no question that with a credit card, the temptation is to buy, buy, buy. Unfortunately, much of credit card management comes down to personal responsibility and knowing your spending limits. 

The most important thing to do is create a budget to track every monthly purchase, whether through cash, credit card, or check. Once this budget is established, know that you only have so much to spend and that you must avoid impulse purchases. 

As strong as credit cards are these days, it’s equally important you don’t get bitten by the temptation bug here either. Just because you can get cash back on that shiny new purchase doesn’t mean you need it or can’t earn the same cash back down the road on something you do need. 

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