Question

. Mary has been working hard to pay her bills and as a result she has a good credit rating and has qualified for a lower interest rate credit card. She needs to move and an apartment in a good location is available now. She has money for the monthly rent but she doesn’t have enough cash right now for the month in advance and additional moving expenses. She is expecting a bonus from her job within the next couple of months that will cover these expenses. How could a credit card be a benefit in this situation?

Answer 1

Mary having a credit card could be beneficial to her present situation as it gives her the ability to move to the new apartment without making immediate cash payments.

What is a credit card?

A credit card is a payment card issued by a bank or financial services company to a cardholder to enable the cardholder to purchase goods and services on credit and later pay for them.

Credit cards and their interest rates are issued based on the user's credit rating.

What are the benefits of credit cards?

Some of the benefits that Mary can derive from using credit cards include:

1. Ability to move to an apartment using her credit card without making immediate cash payments from her unavailable savings.
2. Make credit purchases and withhold cash payments.
3. The cardholder does not necessarily have to have a checking or saving account.
4. The credit card gives Mary increased purchasing power.
5. Using a credit card now helps Mary to build up her credit rating for future emergencies.

Thus, with a credit card, Mary can move to the new apartment by borrowing the required funds for advance payment, including additional moving expenses.

Learn more about the benefits of credit cards at https://brainly.com/question/11492044

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