What does it mean to buy something on credit?

Answer 1

It means that you are receiving the good, in exchange for money that will be paid later.

Advantages

• No need to carry large amounts of money around
• You can improve your credit score if you pay what you owe on time

Disadvantages

• You lose the incentive to save, as you do not 'feel' yourself using the money

Answer 2

To get things they do not have the cash to pay for. For example, I have an automobile

that is paid for , but it will not run, so I could buy an automobile on credit that would run.

But then, I would be in dept.

Answer 3

There are a few ways to buy on credit. One way is by using a credit card. Another option is layaway, which is available at Wal-Mart and K-Mart. Fingerhut offers purchase on credit without a credit card; the company extends the credit to the consumer. Another credit option is taking out a loan to pay for things.

Answer 4

it means some one is willing to lend money and give you time to pay it back usually for every fee or interest.

Answer 5

When the goods are purchased from supplier on a date and the amount of the bill is to be payed on some future date, then the transaction is Credit Purchase.