There are people in the U.S today who have never taken out a loan, made a purchase on credit, or owned a credit card. What these people know is that you can get into financial difficulty if you borrow too much, too frequently. What these people misunderstand is that it's frequently beneficial and convenient, to make purchases by borrowing. Successful borrowing can help you create a positive credit history, which is important for many reasons. Even if you do not believe in making purchases on credit, it is good to have the ability to do so. Unless you have adequate savings, you will need to borrow money to handle an emergency. Credit is also desirable when making major purchases.
Saving up the money to buy a house may take many years. If you have a positive credit history, you can obtain a mortgage loan, buy the house, pay off the mortgage over 30 years, and live in the house while you're doing it. Credit cards are the most convenient form of borrowing. Credit cards are so widely accepted that it seems only a matter of time before they replace cash entirely. If you carry a no-annual-fee credit card, and you pay the card off in full every month, then you pay no interest on the borrowing. Overspending is a risk when credit is readily available, and when it is, it's easy to overspend. A shopping trip can quickly turn into a spending spree, leaving your credit cards tapped out. This may not be a problem if you can afford to pay the bill at the end of the month. If you make purchases on credit and pay them off over time, you end up paying the original purchase price plus a fee for the extension of credit. THANK YOU