Shopping with a credit card could have benefits

Find out some of the benefits of shopping with a credit card instead of cash.

06:41 08 September 2013

You might be used to shopping with cash, but there could be some benefits to shopping with a credit card. Some people are more prone to overspending when they shop with a credit card, so if that sounds like something you might do, you may want to stick to cash. If not though, you could get some interest benefits by using your credit card more.

• Protection—one of the best reasons to use a credit card is the additional layer of protection offered by the credit card company.  You have the ability to dispute a charge if a purchase is not as it was promised or you have a problem the merchant refuses to acknowledge. In addition there is usually protection against fraudulent purchases made with the card so you won’t be responsible for the amount.

 

• Points and extras—another way you can benefit from using a credit card is by acquiring points (depending upon the type of credit card you have) which could be used for airline tickets, groceries, or even movie tickets.

 

• Theft—while many people are concerned, and rightly so, about credit card fraud there is another aspect to consider. If your wallet or handbag is stolen, you won’t have much recourse if cash is stolen. If you mainly carry debit and credit cards though, you can immediately notify the companies so your available funds will be protected and your cards will be virtually useless.

 

• Record keeping—reviewing your purchases may not be a necessity for you, but if you are self-employed or if certain transactions relate to business needs, or contain items which may need to be documented for future tax purposes, you’ll have a record through the credit card company and your statements. It’s much easier to obtain copies of these documents, than trying to remember and keep a receipt from a cash purchase.