cash or credit card?why?

Answer 1

If you have the cash available, use a credit card only if you're going to pay it off each month before interest kicks in - otherwise you pay a lot more for the item than the original price.

Answer 2

There are times when cash should be used and times when credit should be used. I used to think that I would pay cash for everything so that I could stay out of debt. That didn't work because paying with cash doesn't build up your credit and no matter what people say, you need credit for everything! People get themselves in trouble with credit by taking on too much and not paying on time. Paying more than the minimum due, or paying the balance each month helps. Try to keep the balance below 50 percent of the limit because that helps increase your credit score. Another good way to control your credit is to pay a week or 2 before the due date because it cuts down on the finance charges. I wold recommend using cash for perishable items because if you can't pay more than the min. you end up paying for something that is gone for months. Hope that this helps!

Answer 3

I'll tell you what I've told my college-aged daughter -

Live on a cash only basis for a minimum of 2 years before even considering getting a credit card or any other loan.

Why? Because debt is doing great harm to many people and families in the US. People are so buried, that their entire paychecks go to cover things they bought ages ago. Debt is going to create a whole generation that can never afford to retire, and if the trend continues, there may well be a lot fewer millionnaires in a decade or two.

The credit card companies are really brutal and if you mess up at all, they make huge increases to your interest rates then add late fees and overlimit fees of up to $35 a piece per month! So..if you begin to struggle, the credit card companies make it even harder for you to pay them off.

These days your credit rating is becoming EVER more important as many employers check your credit before offering you a job, and auto insurance companies will check your credit to decide how much to charge you, so even small blips in your credit record can cost you big time. Imagine how it feels to lose a job you really want because your credit sucks?

Bad credit can also keep you from renting a home, or buying a car or house.

By living on cash only, you learn to keep your lifestyle within your budget and how to better manage your cash. If you really want to start out right, I'd say no credit until you've gone at least 2 years doing ALL of the following:
1. Paying all your bills and costs and living within your income.
2. Putting aside $50 a month in a special savings account for emergencies (everyone should have an emergency fund..this will come in handy if something happens like the car breaks).

and
3. You're invested the maximum ($3K a year or $250 mo) in a Roth IRA account (for retirement).

If you can manage to do all three for a year or two first, you will have established sound money management practices that make you a much better risk for credit (and yes, you'll have to learn how to wisely manage credit too), AND you'll have begun the path to acquiring TRUE WEALTH.

BTW..that's how you get to be a millionnaire...spending less than you make and investing the difference. Start young and it's almost a given you'll be wealthy.

Answer 4

If you're talking an actual credit card and not a debit card, cash is better. When you pay $5.00 in cash, it is costing you $5.00. When you charge $5.00, you're going to be paying interest so it costs you more than $5.00. Unless you're like my mom. She uses credit cards simply for conveniece. She immediately marks the amount of the charge off her bank balance and pays the credit card bill in full each month so she isn't getting charged interest.

Answer 5

Credit establishes your CREDIT HISTORY, so i believe in credit over cash, so credit card offers protection on your purchases. Unless if you don't have a means to clear your balance every month. I will choose credit. ALOT gives you incentives, like 5% cash back, reward on consumer products, airline mileage and so forth.

Answer 6

If you pay off the bill IN TOTAL EACH MONTH a good credit card is the way to go, because it helps build great credit to see that balance paid off in full each month. If you cannot pay it off each month in full, then definitely cash is the way to go. Using credit cards wisely can be very hard to do, it is so easy to buy, buy, buy with them. But, if you do pay it off each month, you can get a points card that lets you get something in return for free.....as long as you pay it off in full, that is.

Answer 7

Cash credit cards get you in major debt.

Answer 8

cash......it's way to easy to get over your head with credit cards...you could end up paying that minimum payment for 20 years!!!!!

Answer 9

credit card cause you get maximum credit

Answer 10

cash is the wisest choice although I use my debit card which can screw you up