3 Reasons Why Credit Card is King [Updated 2020]

By: Yara Pollard

More and more people have been using credit cards and this trend hasn’t been slowing down. Cash used to be king but it now has been overthrown by credit. Now, credit card is king. According to Shannon Lois, head of analytics, consulting and operation at Experian, 

“Americans continue to show their confidence using credit in 2019 as 61% of people now have a credit card. That consumer confidence is reflective of lenders’ attitude toward providing more credit card access to consumers.”

According to Experian, the average American has at least four credit cards. More shocking statistics showed that 51% of Americans have 2 credit cards and 15% have over 10 credit cards. 

The Federal Reserve also showed that we’ve reached an all-time high exceeding over $1 trillion in credit debt. While there are instances of people falling into financial despair because of bad decisions, it doesn’t change the fact that having a credit card is beneficial.

Moreover, the 2019 report of ValuePenguin showed that credit cards are more used than cash. Here are the results of their study based on 176 million credit card users:

  1. If given a choice, 44% of the survey participants said they would prefer to make payments with their debit cards.
  2. 33% mentioned that credit card are their preferred payment method.
  3. 23% prefer using cash.

According to the Ascent, just 5% of individuals remain to have no credit cards. They also found that the credit card debt of the United States has been increasing for six consecutive years. 

Here are the 4 reasons why credit card is king:

Near Universal Acceptance

Credit and debit cards are more convenient to carry than cash. They are even safer because of their security features. Moreover, a lot of stores and establishments accept debit and credit cards.

But what separates the credit card from the debit card is that it is almost accepted universally. No matter where you go, your credit cards are accepted in most countries. This is how flexible credit cards can be. 

Because you use not your money but the bank’s money, credit can be accepted as payment regardless of what currency type the product or service might have when you made the purchase.  

According to Wallethub, here are the most accepted credit cards worldwide

  • Mastercard – accepted at over 210 countries.
  • Visa – accepted at over 200 countries. 

Better Purchase Protection

It’s hard to make a big purchase with just cash unless you have a secure and convenient way of traveling. Plus, if for some reason, you lose the cash, there’s a chance that you might never get it back.

If you lose the money, you could lose it forever unless they are returned to you. While debit cards have the same form and convenience as credit cards, they don’t have the same laws that limit your liability. 


With debit cards, it is the Electronic Funds Transfer Act that protects your liability. While it does serve its purpose of protecting you from any fraudulent use of your card, it requires immediate action.

If your debit card gets stolen or if you lose it for some other reason, you need to report it to the bank right away. If you do so, you won’t be liable for transactions that have been made with your debit card.

However, if you do this too late, you could end up losing all your money in your debit account. With credit cards, it’s a different story. Credit cards have the Fair Billing Credit Act (FBCA). Another reason why credit card is king is because of this feature. 

The FBCA ensures that you are protected in case of fraudulent use of your credit cards. But even with the FBCA, you should know the do’s and don’ts of credit cards. This is so you are aware of the common causes of credit card fraud and also better know how and when to use your credit cards. 

More Buying Power and Perks

While you can do a lot with cash alone, you can do even more when it’s partnered with a credit card. If credit options are available, credit cards could even trump cash. This is because of the myriad of advantages with using credit cards.

Moreover, not everyone is able to pay a gargantuan sum of money for a large purchase. With a credit card, installment payments can be made each month until the product or the service has been paid in full.

There are two fundamental types of credit payment:

  1. Installment Credit
  2. Revolving Credit

Installment credit is when you pay a fixed price with predetermined schedule until the loan is paid in full. Examples of installment credit are auto loans, student loans and private personal loans.

A definition of revolving credit by Investopedia is that it “is credit that is renewed as the debt is paid, allowing the borrower access to a line of credit when needed.” Examples of revolving credits are credit cards, home equity lines of credit (HELOCs) and personal lines of credit.

Moreover, you can enjoy a lot of perks with using credit cards. There are different types of credit cards and each one has different benefits, perks and purpose. Having different types of credit cards can be advantageous as you can make use of the different credit benefits. 

Here are some of the different types of credit cards:

  1. Standard Credit Cards
  2. Balance Transfer Credit Cards
  3. Secured Credit Cards
  4. Rewards Credit Cards
  5. Charge Cards

Some store cards are a type of rewards credit cards. A good example is the JCPenny credit card. You can earn reward points each time you shop and you can even trade in these points for cash or JCPenny products. 

Having different types of credit cards can also allow you to have a good credit mix which is one of the five factors that determine you credit score. Building credit history is another perk of using credit cards.

With it, you can build a high credit score which enables you to have more credit options and lower interest-rate charges. Credit card is king because there’s nothing to lose when you use credit cards and a lot to gain as long as you are responsible with your debt.

Credit cards are game changers for these three reasons and more. With the online shopping trend and digital payments becoming more popular, credit card usage will just become more prevalent and statistical data has shown this to be true. 

What are your thoughts about credit cards? Do you believe that credit card is king or do you still prefer using cash or debit cards? Let us know. 

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