With the recent rash of retailers reporting data breaches, more and more consumers are considering holding on to their cash and using their cards less. Just like the debate continues around whether or not paying in cash for your new home is a good idea, the experts believe there are reasons both for and against living a cash-only lifestyle.
As the experts from the Equifax Finance Blog point out in the recent article “Cash or Credit? The Risks and Benefits of a Cash-Only Lifestyle,” there are pros and cons to paying with cash versus continuing to use credit.
Some of the advantages of relying solely on cash include:
- Your credit or debit information can’t be stolen because you’re not using it.
- You won’t be able to spend money you don’t have, whereas credit cards allow you to purchase items regardless of whether you have the cash on hand.
The drawbacks of living a credit or debit card-free lifestyle are:
- Your cash can get lost or stolen, leaving you with no funds.
- You aren’t using your credit, meaning that your credit score could suffer. Building a positive credit history is important, especially if you preparing to purchase a home and will need to apply for a mortgage loan.
To view the additional pros and cons of living a cash-only lifestyle, be sure to visit the Equifax Finance Blog. There, you can also browse many other real-estate and personal finance-related articles, such as information on how a home appraisal works, how to improve your credit score and much more.