In this day and age, cash seems to be going the way of the dinosaur.  People simply do not carry cash with them anymore.  As much as I personally tried to avoid joining this increasing majority, I’ve become one of them.  I always keep a few dollars in my wallet and always have an emergency $20 folded and tucked inside my wallet, but, other than that, I stick with me debit card.

This trend has lead to a much-debated question:  Should you use a credit card or a debit card?  I’ve chosen to use a debit card but many people swear by using a credit card for all purchases.  Below, I’ll outline a few of the benefits of choosing to use a credit card.

Avoid Fraud

Using a credit card helps reduce the risk of becoming a victim of fraud.  When fraudulent charges are discovered, they are marked as disputed and you are only responsible for paying the undisputed charges.

Maintaining Records

The information contained in your credit card statement, both paper and online, provide you with the ability to easily keep track of your spending.  This benefit is also available with debit cards.

Rewards Programs

This is probably the biggest benefit of using credit cards.  Most credit cards offer a rewards program.  The most common examples include cash-back programs and reward points programs.  Many people choose to make all of their purchases on a credit card so that they can receive the rewards, then simple pay the bill at the end of the month.  The logic behind this is that you would be spending the same amount of money if you wrote a check or used a debit card.  By using a credit card, the reasoning goes, you get more for your money in the overall picture.  If you can use self-discipline to control your spending, then I see where this method would be beneficial.