savings

5 money myths that are financial nonsense

No. 4: Paying with cash is best
Myth No. 4: Paying with cash is best © Pressmaster/Shutterstock.com

No. 4: Paying with cash is best

Paying in cash or by debit card is always a good strategy, right? After all, if you pay in cash, you can't spend more than you have.

True, but you may be missing out on goodies offered by credit card companies.

"You can rack up some serious rewards points using a credit card," says Koos, who once cashed in points to take his family on a Disney vacation at no cost.

The key to this strategy is to pay off your credit card balance each month.

"If you stay disciplined, the interest earned (on low-interest-paying checking or debit accounts) is easily surpassed by the points earned on a good credit card," Koos says.

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Ask Dr. Don

How often to compound interest?

Dear Dr. Don, Is it better to have interest compounded on your money daily, monthly or quarterly? Which gives you the most for your money invested? Thanks, -- Jan Juxtapose Dear Jan, With all else being equal, the more... Read more

advertisement
Partner Center
advertisement

Connect with us