Card or Cash Sir?
When consumers purchase goods they are usually presented with a number of different ways to pay. Continual advancements in technology, particularly with card machines, means the options are ever developing. The way in which a consumer decides to pay is usually down to their individual wants and needs. Understanding some of the pros and cons of cash versus card can help make the decision.
Safety
Some old school consumers still like to pay for everything with cash. Carrying large amounts of cash can be dangerous for impulse buying as well as for security. Whilst there is a risk of being robbed if you carry cash there are still establishments that still only accept cash so it is always good to have some in your wallet.
Discounts
Discounts for cash still exist and can range from a few pounds to a large percentage depending on the merchant and the product. It is not always evident that they are available, so make sure you enquire.
Loss
Should you lose your wallet or purse, it is much easier to report payment cards as lost or stolen and stop them from being used immediately, with a replacement card just taking a few days. If you lose cash it is gone forever.
Flexibility
Use a credit card wisely and you can borrow money for nothing. If you don't have the cash to hand and you need to purchase something expensive, a credit card will allow you to spread the cost over a number of months. Although to borrow for nothing the credit card has to be fully paid off each month.
Credit Rating
Everyone should work on their credit score. A good credit score can not only help with mortgages but bank loans, mobile phone contracts, bank accounts and much more. Provided that you pay the full amount of the credit card balance each month and do not withdraw cash, using the card will have a positive effect on your credit rating. Cash spending is invisible to credit agencies.
Rewards
Get paid for spending money. If you spend correctly on a credit card you can earn £100s worth of goodies each year at no costs. Rewards vary from cashback to points that can be converted to vouchers. To gain rewards it is imperative that you pay off your card every month. Make sure that you understand the reward scheme and that it is relevant to you.
Protection
If you pay with a credit card you get more protection than if you pay with cash or a debit card. For larger more expensive items there is a money back guarantee if the purchase is faulty, doesn't turn up or if the company it is bought from goes bust.
You will also have protection if your card is used fraudulently. However, it may be difficult to get your money back if you have been negligent with your PIN, for example telling your pin to a merchant when using a card machine. Make sure you don't write down or tell your pin to anyone.
Where ever you shop and however you pay look after the pennies and the pounds will look after themselves.
Safety
Some old school consumers still like to pay for everything with cash. Carrying large amounts of cash can be dangerous for impulse buying as well as for security. Whilst there is a risk of being robbed if you carry cash there are still establishments that still only accept cash so it is always good to have some in your wallet.
Discounts
Discounts for cash still exist and can range from a few pounds to a large percentage depending on the merchant and the product. It is not always evident that they are available, so make sure you enquire.
Loss
Should you lose your wallet or purse, it is much easier to report payment cards as lost or stolen and stop them from being used immediately, with a replacement card just taking a few days. If you lose cash it is gone forever.
Flexibility
Use a credit card wisely and you can borrow money for nothing. If you don't have the cash to hand and you need to purchase something expensive, a credit card will allow you to spread the cost over a number of months. Although to borrow for nothing the credit card has to be fully paid off each month.
Credit Rating
Everyone should work on their credit score. A good credit score can not only help with mortgages but bank loans, mobile phone contracts, bank accounts and much more. Provided that you pay the full amount of the credit card balance each month and do not withdraw cash, using the card will have a positive effect on your credit rating. Cash spending is invisible to credit agencies.
Rewards
Get paid for spending money. If you spend correctly on a credit card you can earn £100s worth of goodies each year at no costs. Rewards vary from cashback to points that can be converted to vouchers. To gain rewards it is imperative that you pay off your card every month. Make sure that you understand the reward scheme and that it is relevant to you.
Protection
If you pay with a credit card you get more protection than if you pay with cash or a debit card. For larger more expensive items there is a money back guarantee if the purchase is faulty, doesn't turn up or if the company it is bought from goes bust.
You will also have protection if your card is used fraudulently. However, it may be difficult to get your money back if you have been negligent with your PIN, for example telling your pin to a merchant when using a card machine. Make sure you don't write down or tell your pin to anyone.
Where ever you shop and however you pay look after the pennies and the pounds will look after themselves.
