Despite the bad reputation surrounding the credit card industry, using credit cards provides benefits over using cash. Here are several advantages of switching to a credit card budgeting system you just can’t get with cash:

Purchase protection and extended warranties: many credit cards automatically include purchase protection or an extended warranty. If you order an item online or through the mail and it arrives in a condition different from what you expected, your credit card company will handle that situation and get your money back or the item replaced. Many credit cards also include 90 days of extra warranty coverage on items you buy with the card, on top of the standard store warranty.

Rewards for buying: how often do you get money back when you make a purchase with cash? Using credit cards with rewards programs allows you to earn a percentage of every purchase back in the form of cash back or points that are redeemable for merchandise or travel – depending on the particular rewards program. Some credit cards make it possible to earn free travel on planes or free stays in hotel rooms.

Access to funds in an emergency: if you don’t use credit, you’re limited to the amount of money on hand or saved. With credit cards, you’ll always have an emergency fund to bail you out if your car needs unexpected repairs or you have medical expenses that aren’t covered by insurance.

Easier financial management: if you use a single credit card for all purchases and expenses each month, you’ll have an easier time seeing where your money goes. Budgeting becomes easier and you can find categories that you are overspending on just by viewing your credit card statement each month prior to paying it (in full).

Use your credit cards responsibly and you’ll be able to take advantage of these benefits that you couldn’t receive when using cash.

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