Consumer credit enables us to have and enjoy goods and services now and to pay for them through payment plans based on future income. Credit cards permits the purchase of goods even when funds are low. If you have established credit, you are better equipped to cope with financial emergencies. Some people consider it safer to use credit cards rather than to carry large amounts of cash. Some people like the convenience of paying for several purchases with one monthly payment.
Credit can indicate stability.
The fact that lenders consider you a good risk usually means that you are a responsible individual. Disadvantages of credit. If you don't repay your debts on a timely basis, credit has many disadvantages. Perhaps the greatest disadvantage is the temptation to overspend, and continued overspending leads to serious trouble. Whether or not credit involves putting up collateral, failure to pay a loan may result in the loss of income, valuable property, and your good reputation.