Pros & Cons of Cash Vs. Credit Cards


When paying for goods and services, a consumer usually has the choice to either pay with a credit card or pay with cash. The decision is usually based on the consumer's individual wants and needs. Knowing the pros and cons of using each form of payment may help in making that decision.


  • It is safer to carry credit cards than it is to carry large amounts of cash. Having cash may make you a target for criminals.

Losing Your Wallet

  • If you lose your wallet or purse, you can easily report a credit card lost and obtain a new one; cash, however, is lost forever.


  • You normally will have to pay interest on credit card purchases. If the purchase puts you over your credit limit, you may be assessed with a fee.


  • Most credit cards let you pay for your purchases over an extended period. If you choose to pay with cash, you will need the entire amount upfront.

Credit Score

  • Using a credit card for small purchases and quickly paying off the entire balance can boost your credit score.

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