Should you pay for your daily expenses with Cash or Credit Card?

Fatin Haris

Fatin Haris

Last updated 07 June, 2022

Cash or credit card? What is the best payment method for your daily expenses like groceries, transportation and food?

There is no right or wrong answer here. It’s about which payment method will benefit you more! Here are a few factors to consider before deciding whether you should be paying your daily expenses with cash or credit card:

Use cash if you’re an impulsive shopper

Notice how you always purchase something you didn’t plan? That could be one of the signs that you’re an impulsive shopper!

However, some brands go out of their way to make sure you make impulse purchases when you shop with them. Simple tactics such as a well-positioned checkout area and sleek packaging work charms for walk-in customers. 

We cannot do anything to stop these marketing strategies but we can control ourselves! 

The next time you’re going for groceries shopping, try to plan your purchases and stick to your shopping list. Leave your credit cards at home and use cash to pay.

Bring just enough cash so you won’t be tempted to put extra things in your trolley. Paying with cash will allow you to have more control of your expenses.

Learn how to control your impulse buying habit, here.

Use a credit card if you want to take advantage of the perks and rewards

Should you pay for your daily expenses with Cash or Credit Card?

Do you know if you pay with Citi Cash Back Credit Card you can earn up to 10% cashback on petrol, groceries and dining? YES, financially literate people use credit cards as one of the financial tools to earn perks and rewards!

Here are a few tips before you apply for any credit card: 

  • Make sure you understand what you’re getting into and,
  • Apply for the one that suits your lifestyle as there are all sorts of rewards, cashback, points and freebies that you can enjoy.

More tips, here.

Use cash if you want to avoid credit card fees

Should you pay for your daily expenses with Cash or Credit Card?

When you’re planning to use a credit card, you need to be aware of all the fees, such as cash advance withdrawal charges, foreign transaction fees, interest rates and annual fees. These charges are hefty and can break you in the long run if you fail to take control of your finances.

To avoid interest and late payment charges, make sure you pay your due in full and on time.

Use a credit card to build credit

Build healthy credit score

One of the reasons people get involved with credit cards is to build credit. 

A credit score is a number between 300-850 that represents your creditworthiness and how likely you are to repay debt. This score is important when applying for a loan from a bank, whether it be a housing loan, a car loan or even a personal loan. The higher the score, the more likely a bank is to put their trust in you, thus giving you a higher chance of getting your loan application approved.

If you’re planning to apply for a loan soon but you have no credit history, a credit card might be one of the best options to start building your credit provided you can manage your money well. 

Using it on daily expenses such as groceries and food is a good start! Want to learn more about building credit? Read the Ultimate Guide To Credit Scores.

Use cash if you want more privacy

Use cash if you want more privacy

Notice how in crime movies, criminals use cash to make it harder to track them? It works!

Use cash to protect your personal information from security breaches and marketing purposes. Retailers are less likely to ask for your email and phone number when you pay with cash.

Use a credit card with purchase protection for peace of mind

Use a credit card with purchase protection for peace of mind

Certain credit cards offer insurance features which include purchase protection for purchases made with the credit card. 

A purchase protection plan offers coverage against theft or accidental damage. However, this feature depends on the credit card issuer, for example:

Each payment method comes with its own benefits and drawbacks. At the end of the day, you know yourself best, so be sure to only make the decision after taking both points into consideration.

Always find out as much information as you can when it involves your finances to make better decisions!


Use a personal loan to consolidate your outstanding debt at a lower interest rate!

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