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This answer is from Is it better to pay cash or pay on time (no interest, no fees)?

David R Hanson
FiLife Contributor
9 months ago

Depends on what's most important to you.

Some people find it easier to budget and avoid excessive expenditures with cash. Indeed, a fair amount of research backs this up.

On the other hand, using credit can give you rewards, add protection against shoddy goods or seller scams, and other benefits besides ( extended warranties, theft or accident reimbursement).

If you use financial software like quicken, using a credit card can also help you track spending with much less effort.

I generally charge almost everything, excepting very small purchases where I know that using a credit card will cost the seller a significant percentage of my purchase.

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