Credit Card or Cash - What is Best while Travelling?

 Get to the Basics

Rather than stating the obvious, we would like you to introspect and answer these questions in your mind:

    Do you tend to overspend when you have access to a lot of money?
    Do you often forget to pay your bills on time?
    Do you go wild and surge into a shopping spree while traveling?

If you have answered these questions with a strong and bold "no," then we believe that you are a responsible spender who knows how to keep expenses within limits. You should consider using your credit cards while traveling. Skeptical, right? Read on to understand its dynamics.
Disadvantages of Cash

Cash payments barely promise perks or benefits. If you flash money, you could attract unwanted attention. An outsider with cash is an easy target for thieves. If you lose cash, your money is gone. Need I say more?
Using Credit Cards during Travel - Advantages

What's in a credit card apart from some numbers and letters on plastic! It is safer to use credit cards during travel. If you lose it, you can simply block it and get a replacement; you aren't technically losing your hard-earned money. It keeps that tension out of your head. It also brings along several benefits.

Reward points : If you happen to have a Rewards credit card, it can sweep you off your feet with the amazing benefits. Most travel rewards cards offer bonus points for booking flights and hotels. Many of these cards have tie-ups with hotels and you can avail a discount while booking. Apart from that, the more you spend, the more reward points you earn - you can reap their benefits by redeeming them later.

Facilities : Most credit cards offer perks to members. You can't avail a 'book-now-pay-later' hotel booking or those sassy self-drive rental cars without a credit card. Some credit cards provide protection for lost luggage and insurance for your travel. A lot of credit cards give you free airport lounge access to wait for your flight in luxury. A handful of travel credit cards slacken the rules for you when you cancel a booking or change the dates.

Convenience : A sleek and tiny card fits snugly into your wallet than a thick wad of cash. Moreover, what if you are just strolling on the beach and feel an impulse to frolic in the blue ocean? What if you are going to the pool bar? Cash could get soggy, lost or stolen. Credit cards are extremely convenient and safe as you need not bear liabilities if they are stolen.
Using Credit Cards During Travel - Disadvantages

Remember those three questions that you had answered in your mind? If you had a "yes" for an answer to any of those, you might need to be extra cautious while using credit cards during travel. Remember that these magic cards can be dangerous when misused.

How badly do we want to purchase those much-coveted souvenirs while traveling! Credit cards give access to oodles of available money. Spendthrifts would lose their minds and splurge on shopping. Irresponsible spenders might not only cross their budget limit but also fail to repay the money on time. Payment issues can pull down your credit scores; they can and will bring you a hefty APR, and you could get caught in the notorious debt trap.

However, let's assume that you have planned well and saved up enough for your trip. You will hopefully spend sensibly and have the required money when the due dates arrive.

Oh, there is one more thing that isn't related to your spending habits. In spite of carrying multiple credit cards, you might run into unexpected exigencies. You might visit remote locations where cards aren't accepted. In case you are traveling abroad, you must check whether your card network functions in the destination country. Visa and MasterCards are more or less accepted universally, but there are quite a few other card networks like Discover, Amex, RuPay, etc. that do not work in all countries. Moreover, credit card fraud is in vogue these days. You need to be on your guard while you travel.