12 Things You Should Never Pay for With Cash

You’ve heard that cash is king, but not always. Sometimes there's a case for using cash, like tipping the doorman a few dollars.

But most times, you want a record of your purchases. Especially when credit card transactions often double as receipts. The computer-logged transactions are like epitaphs, memorializing every impromptu shopping spree.

Whether using a cash back credit card, check, or other non-cash method, here are 12 things you should never pay for with cash.

For work-related purchases, you need a paper trail. Paying by credit card ensures you have a record — critical for your business or your work’s accounting department. Plus, you can take advantage of cash back and other perks with business rewards credit cards.

Purchasing a television or other electronics on a credit card can come with great perks, including interest-free financing, cashback rewards, and extended warranty benefits. Some credit cards offer additional protection to extend the claim period or coverage limit.

Airfare, hotels, and travel expenses are best paid for with a credit card, particularly travel credit cards, as they can pay outstanding points, miles, or cashback rewards. Strategic card users can regularly bank enough points or miles to score free trips.

Many credit cards provide coverage for trip cancellation, interruption, illness, injury, or lost luggage. Plus, you can report a card lost or stolen and get a replacement — without being on the hook for fraudulent charges. With cash, it’s gone for good.

Paying the mechanic with a credit card can be a smart move that offers protection if you discover the service work wasn’t properly done. Many cards offer purchase protection on car repair work. 

Similar to car repairs, putting home repairs or renovations on a credit card can offer you additional protection. If you encounter any issues with the contractor’s work, you can dispute the charges.

Many finance experts believe you should always purchase concerts, sports, or other event tickets with a credit card.

Increasingly, fraudulent sellers are peddling fake tickets and bilking consumers out of big bucks. Credit card companies offer consumer protection so you can recover those stolen funds. 

Credit cards may offer you coverage in the event a show is canceled or postponed, and some even provide black-tie concierge perks, like access to presale tickets and first dibs on popular shows.

Your next car rental is another smart purchase to put on your card. Many car rental agencies even require it, so they’re protected (they know your card is good for it) if you damage the vehicle.

A credit card protects you, too, often by offering additional insurance coverage, including protection for collision or theft.

Putting groceries on your credit card can help you score great cashback rewards, with many cards offering up to 5% cash back for this category. It’s also an easy way to track your grocery spending month-over-month.

While you usually can’t pay your rent on a credit card without racking up some hefty fees, paying the rent in cash is a bad idea. You want proof of payment. Instead of cash, pay by check, Venmo, or some other traceable method.

There are, however, some online payment services you can use to pay your rent (among other bills) via credit card, which can help you earn rewards and gain flexibility in managing your finances.

Using a credit card to pay your utility bills can be a smart way to put some of your finances on autopilot and turn a routine bill into another opportunity to earn cashback rewards. 

Setting up bills on autopay means there will be no disruption to your services. Just make sure to check your statements each month to look for any unusual charges or spikes in usage.

Like your electric bill and other utilities, paying your monthly subscriptions with a credit card can ensure uninterrupted service and great credit card rewards. Some cards are even designed to offer rewards for streaming services, meal kits, and other monthly subscriptions.

Dining out, or ordering takeout, is another spend category to put on your credit card. Many rewards credit cards offer double or triple rewards, or even more, for charging restaurant purchases.

Cash isn’t always so convenient. Many of us never keep it on hand anymore. While sometimes cash is the best payment method, credit cards generally offer you more security, better record-keeping, and points or perks so you can earn rewards for your everyday spending.

And even if you love paying with crisp green bills, keep in mind that businesses are increasingly going cash-free and will only accept digital or electronic payment. So prepare yourself financially, and take along a credit card just in case.