Question

Why do people sometimes use credit to pay for items instead of just using cash?

a) "Because credit doesn't require repayment"
b) "To earn rewards or cashback"
c) "Because cash is harder to obtain"
d) "To avoid interest rates"

Answer 1

People use credit to pay for items instead of cash for various reasons, including earning rewards, the availability of credit, and the ability to avoid interest rates.

Step-by-step explanation:

People sometimes use credit to pay for items instead of just using cash for several reasons:

1. To earn rewards or cashback: Many credit cards offer rewards programs that allow users to earn points, cashback, or other incentives for every dollar spent. This can be an attractive benefit for consumers who want to maximize their purchasing power.
2. Because cash is harder to obtain: Not everyone has immediate access to a large amount of cash. Using credit allows individuals to make purchases even when they don't have the necessary cash on hand.
3. To avoid interest rates: While it's true that credit comes with interest rates, some credit cards offer introductory periods with 0% interest. Additionally, if the balance is paid off in full each month, no interest will accrue.