While abuse of credit has created problems for some, credit itself should not be viewed as a villain. When used properly, credit can be an effective tool to help individuals and families reach financial goals. While credit can be an important part of a financial plan, the amount used must be controlled carefully. Credit Advantages For most people credit is essential for big-ticket items such as homes, automobiles, appliances or educational purposes. Few people have enough cash saved for major purchases.
Some households lack adequate emergency funds to cover unexpected expenses.
Having credit available during times of financial emergencies can be important. Credit is a convenience. Credit cards can eliminate the need for carrying large sums of cash or writing numerous checks. In many locations, a credit card is accepted more readily than a personal check. Using the product while paying for it is another advantage.