When Is It OK To Use Credit?
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The following situations are good criteria for knowing when it is okay to use credit:
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1) You want to purchase a home, a vehicle, or some other high dollar item that would take you a long time to save up for.
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2) Your purchase will benefit you long after you have paid off the debt. For example, if you borrow money to weatherize your home, you will reap the benefits of lower utility bills for years to come, as long as you continue living in the home.
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3) You don't have enough money to purchase a product or service that is essential to you, to one of your family members, or to your entire family.
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4) You prefer the convenience of paying for your day-to-day purchases with a credit card and you make a habit of paying your card balances in full each month.
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5) You are traveling and a merchant refuses to accept your out-of-town check.
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6) You need a rental car or want to reserve a hotel room.
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7) You want to purchase an item online.
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8) You want to be able to take advantage of the legal protections that the federal Fair Credit Billing Act provides when you pay for goods or services with a credit card.
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