Pros and Cons of Paying with Cash or using a Credit Card

What are the pros and cons of using cash vs. credit cards?

In high school, I heard all kinds of horror stories about credit cards. Individuals would go and buy something  way out of their budget and 10 years later they were still paying for it. On the other hand, some never used credit cards and paid for everything in cash. The time would come for that individual to buy a house and they could not because they didn't have a credit score. So much to think about. 

Pros with paying with cash

1. If you always use cash you can never overspend. Have you heard of the envelope budgeting method? In short, you separate all of your money for the month into naturalized envelopes. when the money is gone it is gone.
2. While using cash you need to stick to a strict budget. Like the point above. You budget out with cash and hope it lasts.
3. If you always use cash you are more likely to come across a valuable coin. I love looking at all of the coins I come across in hopes that I will find one that is worth millions. Haha, you will never have the chance to find a coin that is worth anything if you never use cash.
4. It is easier to see the value of money when you use cash. The saying phrase, "The value of a dollar" means a lot more when you really only have a physical dollar. 
5. It is easier to set aside money for a rainy day when you see the physical money. Your old bean cans can now serve a second purpose as you stuff them full of loot. Just in case. Right?
6. Loose change adds up. Have you ever wanted to go somewhere like the Bahamas? Today is your day if you start using cash and have tons of spare change. 

Pros for Using Credit Cards

1.  A strong pro for a credit card is that you have a large amount of money in a compact card. Do you hate carting around a ton of everything but the kitchen sink? Today is your lucky day!! You now don't need to pack anything. Everything can be bought with that tiny rectangle.
2. If you lose your credit card you can easily suspend your it. I have lost my credit card one too many times. I am so grateful that I can quickly suspend my card until it turns up (It is always where I thought I had put it. I must be blind!).
3. While using a credit card you are building a credit score. You can someday buy a house!! The only catch is you need to keep your credit looking good.
4. Credit cards have a lot of perks for users. Do you love cashback? It is as easy as swiping your card 400 times or so. There really is no catch you just might earn a $25 gift card to Chili's!
5. With a credit card, you can spend now and pay later. Today you owe $150 for a car payment tomorrow you get paid. Not a problem! Check that off your list as you grab that nifty piece of plastic AKA your credit card.

Cons of Cash:

1. If you lose cash it is gone. Yes forever!
2. The more cash you have the bigger your wallet gets. When you can't fit your wallet into your back pocket, you know that it is time to turn in some $1 bills!
3. With coin shortages, it is hard to buy anything unless you have the exact amount. Therefore a while every store had a sign saying, "If paying with cash, please pay using the exact amount! Cash shortage, sorry. Sincerely..."
4. Cash builds no credit. Which I think is dumb! If you have lived without a credit card and have paid with everything in cash. Then the bank should believe that you will pay for a house.
5. A ton of people handle paper money. Nasty! Have you ever thought about your cashier at the local grocery story touching your juicy chicken, leaking soda can, apples, then grabbing cash from nobody knows how many hands. Gross! Throw up!
6. When you run out of cash you are really in trouble. Maybe try under the couch cushions?

Cons of Credit Card

1. Credit card information is easily stolen. I hate people that take things that they shouldn't. Unfortunately, it is life. Keep an eye on your transactions all of the time.
2. It is easy to overspend with a credit card. I have to pay how much in credit card interest? A ton! Be careful not to overspend.
3. Remembering to pay off your credit card. Life is crazy. There is always so much to do, but one thing you can not forget to do is pay off your debt that is piling up.

"Our goal is to help the world make decisions with a list of Pros and Cons. We invite all to add to our lists to help others make the most educated decision possible. We are all in this world together to help each other and learn from what others have learned from their lives journey." - Pros and Cons Team

Written By: Sarah