Have you ever been torn between using cash or a credit card as a method of payment? Using cash can have some advantages, but there are several ways that credit cards can be better.

Here are five reasons you should consider using a credit card instead of cash:

1. Credit cards can offer purchase protection policies.

When you make a purchase with cash, you may only be covered by the manufacturer’s warranty. But when you use your credit card, you may be covered by multiple member benefits. Some of these policies are for damage and theft protection or for extended warranty coverage from your card. Furthermore, some cards even offer price protection and return guarantee coverage.

2. Credit cards allow you to easily keep records.

When you make a purchase with cash, it’s up to you to keep your receipts and compile any records you need. But when you use a credit card, you’ll receive a monthly statement with a list of all of your charges. Some credit card issuers may even offer several months of your statements online that you can search, or provide you with tools to analyze your spending.

3. You can earn rewards from your credit cards.

Many credit cards allow you to earn valuable rewards for your spending in the form of points, miles or cash back. The more that you use credit cards for all of your regular purchases, the more rewards you will earn.

4. Credit cards are convenient.

Before you decide to make a major purchase with cash, you have to retrieve the money from your home, your bank or an ATM. But when you carry your credit card, you will always have access to all of your purchasing power, whenever you need it.

5. Credit cards allow you to finance purchases.

Last but not least, a credit card allows you to make purchases using your line of credit, which may be more than the cash that you currently have available. With most credit cards, you have the option of avoiding interest on purchases by paying your statement balance in full and on time every month, or to pay interest charges when you carry a balance. And while you should always use your credit card responsibly and avoid excessive debt, having a line of credit can very helpful in the event of an emergency or other circumstance where cash isn’t a realistic option.

Legal Disclaimer: This site is for educational purposes and is not a substitute for professional advice. The material on this site is not intended to provide legal, investment, or financial advice and does not indicate the availability of any Discover product or service. It does not guarantee that Discover offers or endorses a product or service. For specific advice about your unique circumstances, you may wish to consult a qualified professional.