Credit's advantage and disadvantage.⚙

Advantages of Credit Convenient – Using credit while traveling or shopping can be more convenient than carrying cash. It also provides an itemized list of your monthly expenditures. Credit cards are often readily accepted. They may also earn you benefits in their rewards program. Allows use of other people’s money – during the time you purchase something and when you pay it off, you are using someone else’s money. Immediate – unexpected costs like a car repair can be met quickly. Can buy a large purchase you do not have cash for such as a car, house, etc. Can enjoy using something while paying for it. At times you may be able to take advantage of sales which you do not have cash for at the time. An advantage of using credit is that it establishes a credit history. Credit cards make is possible to order merchandise via the internet. Disadvantages of Credit In most cases credit usually costs money, in the form of interest or other fees. This adds to the total cost of the item. It can be tempting to overspend. Instead of comparison shopping for the best price, you save time and purchase it now. You should keep track of your spending each month to ensure that you can repay a credit card in full when it comes due each month. Overuse of credit can lead to a poor credit record. Buying on credit can be habit forming.