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Unsure about whether you should use a credit card or cash? Read more to find out the pros and cons, and which scores higher.

Credit cards or cash which scores higher

Unsure about whether you should use a credit card or cash? Read more to find out the pros and cons, and which scores higher.

Read on to find out which works better

Credit Cards versus Cash – Which One to Use? Here’s an Unbiased Guide

Credit cards or cash - which scores higher?

The debate between credit cards and cash is a never-ending ending one. While there are pros and cons of having both, below is a objective review of which one scores higher – cash or credit card. Read on. So why credit cards?

Accepted almost everywhere

This makes them universal in their acceptability. Be it a supermarket, during travel, hotels, restaurants, movie halls or even a mom and pop shop, a credit card is accepted and most times is even the preferred mode of payment. Not just this, credit card payments are also a lot faster than cash transactions. Check out the Super Value Titanium credit card from Standard Chartered here.

Spend more than we might have on hand right now.

Unlike cash, credit cards can deliver the value of cash even when you don’t have any. Cards make it possible to spend more than we might have on hand right now. While you may run out of cash, credit cards don’t have a daily spending limit. All you have to do is spend within your credit limit. In special cases, card limit is even enhanced to suit your growing needs.

Merchants prefer customers paying with their credit cards too

So, it is not just the cardholders who like cards. With cash handling entailing costs and the advent of less cash economy, cash is fast becoming a less preferred mode of payment. Credit cards don’t get soiled or torn. If the credit card can be swiped, it is alive to your varying needs at all times of the day. But, cash collection at merchants opens up the window for large security risks that most institutions prefer to avoid. Learn more about our credit card offerings here.

Protect you from fraud and crimes

Credit cards protect you from fraud and crimes such as stealing with enhanced security measures like CVV and OTP. When cash is stolen, there’s no recovery. But for credit card users, there is always protection against fraudulent credit card transactions. If you report a suspected fraudulent transaction subject to limited liability, you may be able to prevent a financial loss. Learn how to report a stolen credit card or a fraud here.

Usage is highly rewarding

Credit cards usage is highly rewarding. This isn’t quite possible with cash spends. Standard Chartered credit cards give up to 5% cashback even for small value transactions. Apart from this, there are a whole host of rewards and privileges that credit cards offer. Check out our credit cards and their benefits here to know more. Be it groceries, fuel, utilities and other types of spending, credit cards give many benefits to cardholders.

Money free of interest

Also, credit cards give you money free of interest. This interest-free loan period can be up to 50 days. There are virtually no loans that offer zero interest. Most of the zero-interest loans have fees linked to them, so the borrower always pays something. Credit cards on the other hand, in effect, give 100% no-cost loans to financially responsible and disciplined borrowers.

Batting for cash

  1. It would be unfair to say that cash has no advantage. But, to use cash, one needs to have cash. With rising inflation, our cash often falls short in front of expenses. Still, cash enforces a very strong sense of discipline. If you do not have cash, you cannot spend. So not having cash limits over-spending and becomes a redline for the budget.
  2. Cash still retains very high acceptance. This is especially true when it comes to very low-ticket expenses. Cash in the form of coins is very handy for these small spends, and it is convenient as well. There is little security risk to carrying a small number of coins.
  3. Some cash-starved merchants do give some deals on cash payments. If you pay by cash, you can get some rewards in form of discounts. In Tier 3 or remote and distant locations, cash has some sort of premium attached to it.
  4. You don’t risk paying any late fees or interest on cash. This is true if you don’t borrow cash. Late fees or interest are a function of borrowing loans. If you are one of those individuals who always stick to your budget and spend within your means all throughout the year, cash is not entirely a bad option.
  5. Cash use does not leave any transaction history. So, usage of cash does not affect your credit score. If you do not use any credit, your credit history will not be documented. This is okay if you never plan to take any loan. If you do need to borrow debt someday, you will have no credit history due to cash transactions.

So, if you are able to use your credit card like cash and remain financially responsible, it would be tragic to miss out on the great credit card benefits and privileges.  Find out which one of Standard Chartered’s credit card suits you best, here.


The views expressed in the article are those of Standard Chartered Bank (“SCB”) and do not constitute financial, professional or other advice. SCB, including its Directors, Officers or Employees shall not in any event be liable for any damages or injury arising merely from your reliance on any information provided here. Each bank / financial institution will have its own processes/ fees/ charges and any information contained in this Article is only indicative. Before placing any reliance on any information contained or views expressed in this Article, we would request you take all steps necessary to verify the correctness thereof. The information contained in this Article is only indicative. Each Standard Chartered Bank Product has its own terms & conditions and should be referred to in entirety. We request you to kindly visit “sc.com/in” or visit your nearest Standard Chartered Bank Branch or call on our Customer Care numbers for more details.