165k views
4 votes
Suppose that you have the option to buy an item with either cash or credit. Under which condition would you use credit?

OA. If you don't want to pay interest
OB. If you want to build a good credit history
C. If you like carrying a lot of cash on you

1 Answer

3 votes

Answer:

B. If you want to build a good credit history

Explanation:

In general, using credit means you don't need to carry a lot of cash, and you do need to pay interest on the money borrowed. Using credit wisely builds a history of reliability as a borrower, so generally means more credit will be available at lower interest rates when you might need it.

__

You might use credit if you want to build a good credit history.

_____

Additional comment

The credit industry has the sole purpose of making money from a person's need for instant gratification. Most purposes for which credit is used can be accomplished by saving money over time, and paying cash.

The industry furthers its goal by selling the idea that you need a good credit rating. That is achieved by maintaining several open and active credit accounts.

User Teaqu
by
5.0k points