he age-old question that is being asked by all the shopkeeper is “Cash or Credit?”.
You must have heard it many times that “Cash is the king.” However, like every other king, this one has its weaknesses too. While shopping you either use cash or cards like credit or debit card or both. Though, strictly using cash while shopping can make you miss out on many perks like cashback, the security of money, discounts, and a lot more.
When you use cash while shopping it has its benefits, nonetheless there are some excellent reasons to use alternatives like debit cards and credit cards while you buy. Below we have mapped out the reasons of not depending upon cash while you shop:
1. Vulnerable to Theft
It is one thing to carry cash for your daily expense; however, when you go out for shopping, carrying a hefty amount of money can be unsafe. In case your wallet gets lost, or cash gets stolen, then there is no accountability to replace the funds. Once the money is lost, there is nothing that can be done. Though if you use debit cards or credit cards while shopping, you can contact the bank and immediately freeze your accounts.2. Limits Spending While Shopping
When you use cash for shopping your spending is limited to what you have in hand. So, when you are out of cash, you must stop even if you have things left on your list to buy. However, using credit or debit cards provides you with an additional purchasing power without the risks that come with carrying cash.In addition to this, with the conveyance to shop from the comfort of your home, people are reliant on the cash-free zone of online shopping. Therefore, you must have some way to pay for online purchases to take advantage of online shopping. This is done with the help of a credit or debit card. You can apply for debit cards and credit cards online hassle-free.
3. Lose Out on Rewards & Credit Points
Credit/debit cards options from reputable financial institutions such as Axis bank offer a plethora of perks including cashbacks, rewards, credit points and EMI facility while shopping that can be redeemed afterward for travel, dining, and more. Especially when you buy an expensive product like a car or a bike, paying for it in EMI is easier than all at once. You can even use EMI calculator before you opt for the loan. While when you buy with cash, you lose out of these rewards and credit points.For instance, if you are in a departmental store to shop your monthly needs, then you can get cashback or store credits for using your credit card or debit card. These store credits can be accordingly used by you the following month while you shop your monthly needs. Hence you save money while shopping!
4. Unprepared for Emergency Shopping
Cash is accepted everywhere, so keeping cash is handy. Though you might not always have enough cash in case of an emergency, at that point of time, instead of looking for the nearest ATM card, you can likewise use your credit or debit card for a secure purchase.Suppose your car breaks down in the middle of the road and needs an urgent repair. You might not have a lump sum to buy the car parts required. This is when having an alternative payment option comes into play and saves your day!
5. Limited Record Keeping
You might think that you are good with numbers, but when it comes to keeping track of money spent while shopping, it can be a bit tricky. If you use all cash while shopping, then you must manually keep a record about where your money is going.You will have to keep a tab on every purchase made and make a list of places where you spent money. However, purchases made via credit or debit card are easy to track via statements and online banking. It not only saves times but also provides an accurate record of your spending’s.