If you’re making a big purchase, ideally you will save up for it and pay the cost out of your checking account. Doing this enables you to avoid interest charges, which only add to the cost of whatever you’re buying. You can also avoid getting stuck with a monthly payment that eats up your future income.
But many people don’t live in an ideal world and they still have to finance big purchases. Both credit cards and personal loans are often used to do that, but credit cards have a bad reputation, and borrowers are often advised to steer clear of carrying a balance on them.
The big question, though, is whether using a card ever does make sense to finance something you’re buying. And the answer might surprise you.In most cases, it really is a bad idea to use a credit card to buy something you aren’t going to pay off right away. The bad reputation cards have is deserved, as the vast majority of cards really do charge you an exorbitant rate if you pay off your balance over time.
