Acceptable Uses Of Credit: | Written by Paul Richard, RFC - Institute of Consumer Financial Education, Executive Director |  | Home mortgage |  | Automobile |  | The purchase of an item that will long outlast the period of debt incurred to buy it, and that in addition lowers other costs. Example: using credit to install storm windows and insulation in your home, which in turn lowers heating and cooling costs. |  | When the purchase is a necessity and not a luxury. |  | When it costs no more money to charge. |  | When it helps your income tax return. |  | When you may need protection on a repair or a purchase (auto, appliances, mail order). |  | Constant temptation to OVERSPEND. |  | Nonessential items purchased. |  | Impulsive spending increases. |  | Payments are late or only partially made |  | Facing bankruptcy. |  | Good identification (required for cashing checks and most car rentals)).. |  | Safe substitute for cash. |  | Automatic record keeping. |  | Consolidates many purchases into one payment. |  | Saves money when you can take advantage of a good sale. |  | Orders can be placed easily by mail or phone. |  | You have leverage against the merchant when a problem arises. Your dispute/claim will get prompt attention when the merchant knows your payment can be delayed or disputed. | |