Cash, Debit Cards & Credit Cards – The Best Time to Use Each

People often prefer to use a debit cards and cash for purchases as these methods are helpful when trying to control spending. Though debit cards are like like cash and hold the convenience of swiping a card- they are not always the best option. Debit cards can be a relatively easy way for criminals to get a hold of your bank information. With that being said, let’s identify the best times to use each of these means of payment and how to keep your information safe when swiping your card.

It is always a good idea to carry some cash with you, just in case you run into a small business that doesn’t take card or to have if there is ever an emergency. Cash will start and finish a transaction right then and there. Studies show that using cash can help people better control their money and not make impulsive purchases. However, cash is not always convenient

This is where debit cards come in, they’re like cash but hold the convenience of a card. Debit cards allow you to make purchases straight from your account which automatically shows how much you have left in your account. Though are great to use for everyday purchases like buying groceries, you may need to carefully consider what purchases you are making with your debit card.

7 purchases you should think about swiping your debit card for:

  1. – Buying gas at the pump
  2. – Unfamiliar locations
  3. – Making a large purchase
  4. – Hotel reservations and other rental items
  5. – Bills, subscriptions, and automatic purchases
  6. – Cash withdraws at independent locations
  7. – Online purchases

*Be observant of “skimming devices” – these devices are often found in places like the gas pump or ATM’s. Skimmers look very similar to regular card readers but can be spotted if you pay close attention. For example, skimmers could be slightly larger or have a slight color difference from the rest of the card readers. Be cautious – with one swipe of your card, criminals could have your bank information.

The key to using Credit cards is to use it responsibly because they do have the ability to negatively impact your finances, but there are many benefits to using a credit credit card frequently and responsibly. These benefits include better protection against fraud, rewards, and they help build credit. We highly recommenced using your credit card for the following purchases.

  1. – Online purchases
  2. – Paying Bills, subscriptions, etc.
  3. – Travel (airfare, hotel, rental cars)
  4. – Large purchases

TIP: Don’t swipe your credit card if you know you will not have the funds to cover it once the bill is due.

We hope this will be helpful next time you make a purchase and question what the best way to pay is. Keep in mind that cash and debit are great when trying to stay tight on funds but more often than not, credit cards are the way to go for the safety of your account and for helping you build credit for the future!