Final answer:
Credit cards provide a convenient way to manage monthly expenses and handle unforeseen or large purchases, as they offer access to lines of credit that can be paid back over time. They help in building a good credit score if used responsibly but usually carry higher interest rates.
Step-by-step explanation:
Individuals might consider using credit cards for various reasons. One key advantage is that they offer a convenient way to manage monthly expenses by allowing users to pay for goods and services and then pay off the balance over time. Credit cards are particularly useful for making large or unforeseen purchases, such as buying an automobile or managing emergency expenses, because they provide access to borrowed funds that can be paid back later.
While credit cards do not inherently allow savings to grow, responsible use can lead to the establishment of a good credit score, which can be beneficial for future borrowing. It's important to remember that credit cards usually come with higher interest rates compared to other forms of lending, which can add to the cost of borrowing if balances are not paid off promptly. Thus, they should be used judiciously, especially when considering nonessential purchases, as the convenience of credit can easily lead to overspending.
Finally, it's worth noting that credit cards do not increase the total money supply within the economy, just like the number of checks one has doesn't increase their checking account balance. They simply provide a way to access and move existing funds more efficiently.