Buy Now with Credit or Later with Cash?
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Buy Now with Credit or Later with Cash?
One of the many considerations of making a major purchase is whether you need it now or later. Clearly, if your refrigerator stops working, you need it right now. If, however, you want a 60" plasma screen TV before the big game, that’s another matter. In the first case, you may well need to purchase with credit, if you don’t have the cash to replace the refrigerator now. In the second case, you should probably make a plan to save for the big screen.
Things To Know
- If at all possible, save up for your purchase.
- There is some value in using credit, such as establishing credit.
The value of saving
In most cases, a word to the wise is to make a plan to save for your big purchases and avoid credit whenever possible. The interest you would pay on your purchase could easily be enough for two plasma TVs.
The value of using credit
You may consider paying with credit to establish credit. A younger consumer may want to make a major purchase, such as a laptop, with first-time credit. Another example is reestablishing credit. If you misused credit cards in the past and want to reestablish your credit, you can make a major purchase in the amount of $500, as an example, possibly with a secured credit card, but make sure you pay according to the terms EVERY month.