Whether you can’t get a credit card, have them but they’re maxed out, or you simply want other options sometimes so you don’t become too reliant on your credit cards, it’s a good idea to know your alternatives. Credit cards can be used for everything from everyday purchases to long-term financing. Sometimes they’re the best option for you, and sometimes they aren’t (such as if they have a high interest rate and you need to finance something over several months or more).

Today let’s talk about five of the most common alternatives to credit cards, how each can be used, and why they’re worth considering sometimes.

Alternatives to Using Credit Cards (and When to Use Each)

1.    Debit cards — Debit cards, like the NAB Visa debit card, give you all of the convenience of credit cards when you want to pay for everyday expenses like groceries, or when you want to shop online or over the phone. The benefit? You’ll never be charged interest or go into debt, because you get the convenience of a card but you only spend the money you actually have. The downside? You can’t finance purchases over time with a debit card.

2.    Cash — Cash may be an “old school” style of spending, but it still has its place. If you’re trying to stick to a strict budget for example, carrying only a limited amount of cash for what you really need could be a better alternative than using a credit card where you might be tempted to spend more freely because you have access to a larger available credit limit.

3.    Loans — Credit cards aren’t the only way to get credit for purchases you want to finance over time. And sometimes a personal loan can actually save you money with lower rates than many credit cards offer. Just because you have an available credit limit that will cover the new furniture you need, it doesn’t mean that card is giving you a good deal. Consider a loan directly from your bank and shop around until you get the best rates.

4.    Traveller’s cheques — Traveller’s cheques are still a useful financial tool when travelling. They’re safer than cash in that they can be reported and replaced if they’re lost or stolen. And you can split them up to help you stick to a budget during a trip. By using traveller’s cheques you can also keep your credit cards safely locked up in a hotel safe so you don’t lose access to your credit limit if they’re stolen while you wait for replacements.

5.    Prepaid credit cards — Prepaid credit cards are another option for travellers, allowing you to keep your credit cards safe while you use this alternative instead. They can also let you lock in exchange rates if you get the card in your destination’s currency. They can even be a worthwhile alternative to credit cards at home sometimes, such as giving students prepaid credit cards to help them form good financial habits before they move on to getting their own first credit card.

There is nothing “wrong” with using credit cards in any of the above example situations. But sometimes it’s just nice to know that you have other options there when you need them, whether it’s an issue of budgeting or safety or anything else important to you.