What are the <span title="characteristics,nature,disadvantages">characteristics,nature,di...</span> of credit and cause of using credit in terms of finance?

Question

What are the characteristics,nature,di... of credit and cause of using credit in terms of finance?

Answer 1

credit Card is a very useful financial tool if you use it properly, I could be very useful. The careless use of Credit Card May invite bankrupcy :)

Answer 2

Credit is designed to allow for the average citizen to obtain consumer goods, houses, etc. that they otherwise could not afford. Without credit, most could not afford to purchase a home, drive a fancy car, get a college degree, and so forth.

The biggest disadvantage I see in the way that credit operates in 21st century America is that we allow certain lenders to grow so big that they can abuse the system with impunity, knowing that they can always run to the government (i.e. the taxpayer) and expect a bailout...yet the small businessman cannot operate that way.

If you manage your credit well, you will probably enjoy a higher standard of living than one who does not. But again, those who manage their credit well are still susceptible to financial ruin due to things beyond their control, like medical debt.