1. Advantage -lets you enjoy goods and services now.
-credit cards allow you to combine several purchases, making just 1 monthly payment.
Disadvantage- temptation to buy more than you can afford.
-If you fail to pay your bills you can lose your good credit reputation.
2. close-end credit - is credit as a one-time loan that you will pay back over a specified period of time in pay ments of equal amounts.
Open-end credit - is credit as a loan with a certain limit on the amount of money you can borrow for a variety of goods and services.
3. A) Family or parents.
B) Commercail banks, Savings plan, and Credit Unions.
C) Finance companies and Retail stores.
5. I think using credit cards is fine as long as you have the money to back it up. Ceridt cards should only be used in emergancy becuase if you use everyday for trival goods you can go over your financial limits. I do plan on geting a credit card when i am older and have more income. I prefer using cash one low priced goods and using a credit card for high priced goods.
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Good post Tyler, credit card are necessary when you get older to rent cars and purchase items on line. It is a good idea not to use credit to buy small items such as a soda. Credit is often used to buy large items but you want to pay them off as soon as possible. A new x-box 900 may end up costing you double the price if you let the balance ride on your credit card.
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