What is one advantage of using a credit card over cash?

One significant advantage of using a credit card over cash is the ability to build a credit history. When you use a credit card responsibly, such as making payments on time and keeping your balance low relative to your credit limit, you demonstrate to lenders that you are a reliable borrower. This positive credit activity is reported to credit bureaus, contributing to your credit score. A good credit score is crucial for obtaining loans and better interest rates in the future, making it an essential aspect of financial planning.

In contrast, cash transactions do not provide any opportunity to build credit history, as they are not reported to credit agencies. While immediate access to funds, repayment obligations, and spending habits can be important considerations, they do not offer the long-term financial benefits associated with establishing and maintaining a good credit history through the use of credit cards.