Cash or credit during COVID?

It’s been weeks into the lock down and more and more people are using credit cards instead of cash. As the economy starts to open again, there are benefits to using your credit card.

 Is cash king?

You have a number of protections when you use your credit card that you don’t when using cash or debit. It depends on your card type (the bells and whistles you’re paying for with your annual fee) so dig into your credit card’s “terms and conditions”.

I looked at one of RBCs cards and the protection reads:

  • “Purchase Security and Extended Warranty Insurance. Purchases made with your RBC Cash Back card are automatically protected against loss, theft or damage for up to 90 days from the date of purchase. The coverage also doubles the manufacturer’s original Canadian warranty for up to one extra year.”

So, if you’re running out to get a new barbecue to entertain at home over the summer or a new recliner to relax with your favourite Netflix show, buying it on your credit card makes sense in case you have an issue with your product down the line. Not to mention, the points you’ll accumulate. But the caveat as always is to ensure you’re paying it off at the end of the month. Don’t use your credit card as a means to buy “wants” that you can’t afford.

I sat down with Global National’s, The Morning Show yesterday to discuss. Catch the segment here.