5 Times You're Better Off Using a Credit Card

Paying in full and in cash is great if you want to immediately close a transaction. There are times, however, when paying with your credit card can give you additional perks aside from helping you pace your expenses. Here are a few:

Situation 1: You do groceries for your family and you know that the receipt will be a couple of feet long.

(POLL: Cash or Card?)

Groceries can be expensive, and if you're doing it for a huge family, you're often shelling out four (or five) figures every time. Using your credit card, especially one that can earn you rebates, can help you manage costs and even give you discounts and cuts the next time you shop.

Situation 2: You've got tons of bills to pay and you don't have time to wait in line to settle them.

(POLL: Cash or Card?)

It's not easy keeping track of statements, especially if you've got a list of ten that you have to pay every month (and with different due dates, too). A surefire way to avoid getting late notices and charges is to tie them to your credit card account. That means you'll only have to pay your credit card dues, and that's a whole lot easier than sifting through sheets of payables.

Situation 3: You're signing up for a gym membership.

(POLL: Cash or Card?)

It's important to invest in your health, and going to your local gym can help you get active. It can get pretty expensive though, so it's sometimes best to pay in installment instead of going all-out cash: plus, thinking of how much you're shelling out every month can motivate you to keep going. There are credit cards customized for your wellness needs that can earn you rewards points and even give you access to other establishments such as premier health clubs and spas.

Situation 4: Your refrigerator broke down and you're forced to get a new one.

(POLL: Cash or Card?)

Getting a new fridge means you have to redo your budget all over again because, let's face it, you'll have to crack open the proverbial piggy bank to cover for the sudden expense. A good way to lessen your financial stress is by paying with your credit card and taking advantage of your local appliance store's installment plans. There are many zero-interest schemes that give you ample time to get the cash you need without burdening your wallet.

Situation 5: Your favorite airline is having a seat sale to your dream destination, and you just have to book a flight.

(POLL: Cash or Card?)

Sometimes, the only way to catch a seat sale is to book online, so it's important to have the right credit card that can give you maximum travel perks. Some cards accumulate points and miles that you can use to redeem free flights and accommodations—choose the card that requires the least spend to get one mile. Others give more airline options, while others limit your choices to just one or two airlines, so be sure to check the available options before you sign up. Others give you access to VIP airport lounges and under-the-radar tourist spots. There are also some that can do all of the above, while still stacking up more reward points for your next trip, so choose wisely!

Remember that each situation is different, and while there may not be a "right" answer (or payment option), you can always make informed decisions by keeping track of your expenses, making sure you manage your monthly funds right, and knowing what your capacity to pay is should emergencies arise.

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