6.1 questions!

Liz Ring Section 6-1 Questions 1-3 and 5

two advantages and two disadvantages of using credit is Advantages are that it lets you enjoy goods and services now, using credit gives you a record of your expenses.

Disadvantages are that credit costs money and that there is more temptation to buy more than you can afford.

Closed end credit is a one time loan that you will pay back over a specific period of time in payments of equal amounts.

Open end credit is a loan that you can only borrow a certain limit amount of money for a variety of goods and services.

An inexpensive loan is a loan without interest. Medium Priced loan is a loan with moderate interest Expensive loans are loans that are the most expensive.

My view is that it is a good thing. When I get older I plan to obtain a credit card. I would prefer to pay cash because it is quicker but then again having a credit card will pay off when you are buying a car or a house or something for credit. To obtain a loan you have to have some form of credit in your background to make you liable to obtain it. Money management would be in my eyes having proof of obtaining credit will get you along better in the world then having no credit when you are ready to buy a house or get a car.