Pros and Cons of Credit

Logan Berndt

Advantages

  1. Protection of Purchases
  2. Emergencies
  3. Building a good credit line
  4. Credit Card Benefits

Disadvantages

  1. Blowing your Budget
  2. High Interest Rates
  3. Increased Dept
  4. Credit Card Fraud

Revolving Credit

  • Revolving credit is a line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customer's cash flow needs.
  • Credit cards are the most widely used revolving credit

Installment Credit

  • Installment Credit is granted on condition of its repayment at regular intervals, or installments, over a specified period of time until paid in full.
  • Car loans, mortgages, and student loans