People who have had problems with credit cards probably consider them the ultimate in insecurity. After all, they’re even called “unsecured” credit. For people who use their credit wisely, however, and for merchants that accept credit cards, they provide a lot of added security when compared to cash.

Credit cards allow you to bring a lot of money to places where you wouldn’t dare bring a lot of cash. If you’re going to a far off city (or even your own neighborhood), you’d be insane to carry thousands of dollars with you. If the cash is stolen or lost you’re out the full amount. It’s gone forever and there is really no way that you can get compensated for it (it can file a police report and report it on your taxes, but that still won’t get you back the full value of the cash lost).

One credit card, however, can easily have a credit line in excess of $5,000 and it will be accepted virtually everywhere. If the credit card is stolen or lost, you aren’t out the entire $5,000. You would simply be liable for a maximum of $50 as is mandated by federal law and many credit card companies will even wave this charge and won’t hold you liable for any money.

Knowing this, it can also help keep you safe in a dangerous situation. If you are unfortunately mugged on the street, would you be more likely to quickly hand over your wallet if you had a credit card in it or thousands in cash? With the cash, many would likely fight to keep the wallet which could put you in more danger rather than simply handing the wallet over. Knowing that the credit card can be replaced with little to no money lost will likely keep you from aggressively fighting back in a dangerous situation.

In all these ways, credit cards provide more security to your money than cash does. This should not be disregarded as it can save you a lot of money compared to always caring around cash.

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