When it comes to making your purchases, there are always going to be pros and cons to the method of payment you end up using. Below, we will be going over some of the pros and cons to making payments with credit cards over either check or cash.
Pros Of Credit Cards Purchases:
1. Price Protection.
With a credit card, you are going to get price protection which can really allow you to save as much money as possible on whatever you are purchasing. This is especially true if you are purchasing something that tends to fluctuate in price and/or whatever you are purchasing is high priced, to begin with. A lot of the major credit cards come with some form of price protection.
2. Purchase Protection.
With a credit card, you are also going to get purchase protection with a lot of cards that will allow you to return a product if you are not fully satisfied with it after the return period expires. In some cases however that do not allow the use of credit cards or other federal payment types (such as Cannabis dispensaries) you would need an atm for your marijuana shop so your customers could pay in cash.
3. Extended Warranty.
Another significant benefit that comes with purchasing things with a credit card is the ability to extend the warranty of certain electronics or other items that might not have enough warranty coverage, to begin with. This can save you from having to purchase an extended warranty separate.
With a credit card, you are essentially borrowing the money to pay for something. Therefore, it will allow you to pay for something that you might not necessarily have the funds for at the time. This can be great for emergencies.
Cons Of Credit Card Purchases:
The main negative associated with purchasing something with a credit card is only really valid if you are not planning on paying off the purchase right away. If you are going to be making payments on the purchase, you will likely have to end up paying hefty interest on it unless you have a no interest and/or low-interest credit card.
Pros Of Paying With Cash and/or Check:
1. No Interest.
With cash and/or check, you are going to be paying the purchase off with money that is already in your account. Therefore, you are not going to be paying any interest off of it.
2. No Overspending.
Another good thing is not being able to overspend. You either have the cash and/or money in your account and can get it from the ATM machine or you don’t. Therefore, you will actually feel like you are paying for something, unlike a credit card purchase.
Overall, there are pros and cons to paying with both cash or credit. As long as you are confident in your ability to pay off the purchase in time, you are typically going to be better off paying with credit every time. But for those with problems with spending or who don’t have access to the funds to pay it off in time, it is typically better to use cash or check.