You Might Prefer Cash, but Here's 7 Times when It's Better to Use Credit ...

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If you're committed to making good financial decisions, you might avoid credit cards and pay with cash. Using cash is one way to avoid costly debt and maintain a good credit rating, but there are times when it's better to pay with a credit card.

1. Booking a Hotel/car Rental

You might have a vacation fund and plan to finance your entire getaway with cash. But if you're booking a hotel or car rental, you're better off using a credit card. In most cases, a hotel or car rental company places a temporary hold on the card, which could be a couple hundred dollars over your actual cost. If using a debit card, this hold reduces the amount of available funds in your bank account. However, you can use a credit card and keep your cash fluid. Also, some credit card companies include car rental insurance as a perk, so you won't have to purchase this extra insurance at the counter.

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