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Credit: It's Convenient

Credit cards are convenient to use and many offer special perks, such as free airline tickets, hotel stays, or even cash back. In addition, many cards offer special protections for users, such as travel insurance and assistance in filing a dispute should something purchased with the card work poorly.

Credit in the form of a mortgage or auto loan makes purchasing big-ticket items much more convenient and practical because it would take such a long time to save enough money to pay the full amount up front. Credit allows you to live in a house or drive a car while you are still paying for it.

Student loans can make attending college or technical school more attainable, as taking a pay-as-you-go approach would put a college education or advanced training out of reach for a lot of people. With a college education or skilled technical training, you are likely to earn a higher income over your lifetime, so making an investment in education is a great use of credit.