What is a key benefit of using a credit card?

A key benefit of using a credit card is paying for purchases with borrowed money from the issuer. This allows consumers to make purchases without needing to have the entire amount available in their bank account at the time of the transaction. Instead, they can defer payment until a later date, giving them greater flexibility in managing their finances and budgeting.

Credit cards also typically come with additional benefits such as rewards programs, cashback offers, and the ability to build credit history when payments are made on time. This type of financing can assist consumers in emergencies or larger purchases, provided they manage their credit responsibly and are aware of the terms associated with interest and repayment.