Question

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

A) Credit allows for immediate and convenient transactions.
B) Credit provides an opportunity to earn cashback rewards.
C) People prefer the security of not carrying physical cash.
D) Credit enables the purchase of expensive items without immediate payment.

Answer 1

People sometimes use credit to pay for items instead of just using cash due to convenience, rewards, security, and deferred payment options.

Step-by-step explanation:

There are several reasons why people sometimes use credit to pay for items instead of just using cash:

1. Convenience: Credit allows for immediate and convenient transactions. People can quickly make purchases without the need to carry physical cash or visit the bank.
2. Rewards: Credit provides an opportunity to earn cashback rewards. Many credit cards offer rewards programs where users can accumulate points or cashback for their purchases.
3. Security: People prefer the security of not carrying physical cash. Credit cards provide added security features like fraud protection, which can safeguard against unauthorized use.
4. Deferred Payment: Credit enables the purchase of expensive items without immediate payment. Instead of paying the full amount upfront, people can make affordable monthly payments over time.