Final answer:
Using a credit card to purchase an item and paying it off over several months may decrease your credit score due to increased credit utilization and interest charges, though timely payments can be beneficial. The full effect on your score depends on several factors, including your payment history and balance-to-limit ratio.
Step-by-step explanation:
When you use a credit card to purchase an item, such as a new jacket from a department store, and decide to pay off the charge over several months, it has the potential to decrease your credit score if a high balance is carried relative to your credit limit (also known as credit utilization).
However, making payments on time can have a positive effect. It's important to remember that the answer to whether it increases or decreases your score isn't straightforward since it depends on several factors, such as the ratio of your balance to your credit limit, payment history, and the overall amount owed. If the balance is paid off within 30 days and no interest is accrued, then it would not negatively affect your credit score and might even help it by showing responsible credit usage.
Nevertheless, every month you carry a balance, you're charged interest on the amount you owe, which is calculated by multiplying your balance by the interest rate. This can add to the total amount you have to pay back and may make it harder to pay off your credit quickly.