A look at the advantages and disadvantages of using credit can help determine when the use of credit is appropriate. Advantages Goods and services can be used while you are paying for them. Delaying payment for some goods and services will give you a greater share of your current income to use for other purposes. Installment credit can become a form of budgeting for some persons. It can discipline them to meet certain expenses regularly.
Many credit transactions are more convenient and are safer than using cash.
There is no need to carry large amounts of cash, and credit makes it easy to take advantage of sales. Credit can improve service on unsatisfactory merchandise or make returning merchandise easier. Merchants may be more receptive in making adjustments on open accounts because returns can be credited to the account instead of requiring a cash refund. It is easy to overextend spending when using credit and harder to resist impulse purchases. Delaying payment decreases the amount of future income you have to spend.