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Paper Vs Plastic: When You Should Use Your Credit Card

Yes, cash keeps you out of debt, but sometimes your credit card will give you the purchase protection you really need.
Credit: sarunkkt
(Credit: Thinkstock)

NERDWALLET -- Paper versus plastic. When you say those words, you normally think of paper or plastic bags for shopping.

But what we’re talking about this time is when you use cash versus credit cards. Cash means you have no debt hanging over your head. But there are times when plastic is actually safer.

To help you know the best way to protect your purchase and your money, we turn to the experts at NerdWallet.

Use your credit card when:

*You buy electronics or other products with warranties. Why? Your credit card often offers a free extended warranty on those items.

*When you buy a product online or use a delivery service. If something doesn't arrive or it's damage, you're not immediately out the money--you simply have to stop or reverse the charge.

*When you travel. Whether it's the gas station or a hotel, each puts a hold on your card for the expected total. You don't want that on your debit card...tying up your real money. Save your cash and charge it!

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