Credit Card

Which Payment Method is the Best? Cash, Credit or Debit?

Cash, Credit or Debit

Cash, Credit, or Debit?

Whether you represent a business that makes large purchases regularly, or are an individual who makes just the average amount of daily transactions, you only have three choices: cash, credit, and debit. Depending on your situation, one or a combination of these three options may be your best bet. Let us discuss these options separately and see which one is best suited for you.


Keeping cash can help you track money and your expenses. You can choose the amount of cash you are willing to spend, carry only that certain amount, and then stop when you run out of it. If you carry an ATM card, you can withdraw cash from any nearby ATM instantly, also receiving a receipt. This is a great way to prevent you from spending extra unnecessary cash.

Handling cash can be trouble at times. You can misplace it, it can be stolen, and handling large quantities of it can be difficult.

Credit Cards

Credit cards are small, easy to carry, and can prove to be very useful in emergencies. These cards are used to keep track of your credit history – the better your history the better your credit score. With a high credit score, it becomes easier to get loans at lower interest rates.

Many credit cards have reward systems too. These cards can be used in most places without any issues, and the banks simply refund you if your card is stolen. However, having a credit card also gives you access to money that you do not have, and you may end up buying things you cannot afford.

Debit Cards

Debit cards are also a popular method of making payments. There are two ways of making purchases:

(i) Signature Debit: An online method of payment, which is used to transfer funds across a digital network

(ii) Pin Debit: Pin debit is the transaction that takes place after you input the ATM pin and it clears immediately.

These cards are widely accepted and allow you to manage your finances in a better way as you only have access to cash that is present in your bank account. The drawbacks include the possibility of lack of access to your account during fraud or error investigations. These cards offer comparatively less protection than credit cards with the added possibility of high overdraft fees should you overdraw your account.

The decision to choose cash, debit or credit, or a combination of either, is based entirely on your needs, lifestyle, and habits. Careful consideration of benefits and detriments should be done to make the choice that is exactly right for you.

Do you prefer cash, credit, or debit? Feel free to let us know your opinions through the comments section.

About the author

Willie DeJarnette

Just wanted to provide some basic knowledge of credit cards, credit score, and other credit types financial resources. Always trying to provide an understanding how to use credit cards and basically staying away from financial ruins.

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