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When Should You Use Credit?

Directions: Decide if you think it would be wise to use credit to make these purchases. For each one, put a check by your answer.

Activity

This activity can be filled out and printed, or it can be completed online to save your answers.

Decide if you think it would be wise to use credit to make these purchases:

Yes	No	Maybe
			Would you use credit to buy appliances, furniture, or other things for your home? Using credit allows you to use the item as you pay for it.
			Would you use credit to buy gasoline or food? It is not recommended to use credit to buy items that you eat or use only once and then they’re gone. If you do use credit to purchase gasoline or food, then pay for these items in full when you get the bill.
			Would you use credit to buy a home or pay for a college education? Most people could never buy a home or attend college unless they use credit.
			Would you use credit instead of cash or checks to make several purchases in one store? It may be more convenient to use credit than to write several checks, and it is safer than carrying large amounts of cash. However, you may not make purchases as carefully.
			Would you use credit to purchase something that costs $8.50? Consumer-credit counselors do not recommend using credit to purchase items costing less than $25. It is difficult to keep good records about small credit purchases. And, a lot of small purchases add up very quickly.
			Would you use credit to purchase something on sale? If you plan to purchase an item in the future, you might save money by using credit to buy it now rather than waiting to pay cash. Whether or not you save money depends on how much the credit costs and how you repay it.
			Would you use credit to pay for a vacation? If you use credit to pay for a vacation, you’ll need money in the future to pay the credit payments. Only if the monthly credit payments fit into your budget, should you take a vacation now and pay later.
			Would you use credit if you couldn’t save enough money to buy something you wanted? If you cannot afford to save a certain amount of money each month toward a purchase, you probably can’t afford to buy it on credit. Many people, however, find it easier to make credit payments each month (forced savings) than to save the same amount of money each month.

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