Cash or credit cards? Which is safer to carry around with you while shopping or travelling? While some people prefer cash, avoiding the temptation to spend too much (which credit cards sometimes encourage), a credit card is often a safer choice.

The safety credit cards provide often relies on one fact–credit cards are replaceable.

Cash Can be Risky Business

Let’s say you’re going to make a large-ticket purchase–$1000 or so for a new flat panel television. You have the option to pay with available cash or with your credit card. You go to the store. Someone steals your wallet. Your money (and cards) are gone.

If you had $1000 cash on you in that situation, it’s gone for good. You cannot replace lost or stolen cash. If you only carried your credit cards however, you could call your credit card company to report them stolen and have them cancelled and replaced. The thief wouldn’t be able to run up that $1000 debt in your name (and if they did, you generally would not be held responsible for it).

Beyond Theft

Theft isn’t the only way cash or credit cards can disappear. How many times have you lost your wallet? Chances are good that you’ve done it at least once. If you lost it and weren’t able to retrieve it, would you rather have it full of cash or some credit cards that could be replaced?

There’s also always the chance of damage. If you keep a lot of cash on-hand, and you become the victim of a flood or fire, your cash may be destroyed. If the same thing happened to your credit cards, you could have them replaced by the bank.

Physical Safety

There’s another element of safety many people don’t consider when it comes to the cash versus credit card debate–physical safety. When you want cash, what do you often have to do? You visit an ATM with your debit card. While it may not happen often, you always need to be alert at the ATM to make sure no one is watching you enter your PIN in order to then steal your card and have access to your cash balance. Planning ahead of time to use a credit card instead of cash puts you at risk much less often.

Purchase Protection

Credit cards often offer safety even after you complete a purchase. Major credit card companies provide protection against defective merchandise (and sometimes even free travel insurance while you’re away like with the Citibank Clear Platinum card). In other words, if you purchase something only to discover that it’s defective, and the retailer refuses to issue a refund or exchange, your credit card may cover it. If your card offers travel insurance, it may even refund you if travel plans are changed for reasons beyond your control. The ability to initiate a chargeback if you’re taken advantage of? Cash can’t do that.

Whether you’re at home or on the road, weigh the risks of cash and credit cards carefully. While cash may protect you from yourself and simply spending too much, credit cards can protect you from so much more.