What does consumer credit allow individuals to do?

Consumer credit is a financial tool that enables individuals to make purchases and access goods or services without the need for immediate payment. It allows consumers to leverage borrowed funds to finance larger purchases, such as cars, appliances, or vacations, and pay for them over time through installments or credit card payments. This functionality makes it easier for individuals to manage their cash flow and make significant purchases that they might not be able to afford upfront.

While saving money in high-interest accounts is important for financial health, it is related to savings and not a function of credit. Similarly, investing in real estate and stocks involves using capital for investment opportunities, but it doesn’t typically fall under consumer credit's immediate benefits. Lastly, withdrawing cash from credit lines can be a feature of certain credit products, but it does not capture the primary purpose of consumer credit, which is to finance purchases. Therefore, the ability to finance large purchases without immediate payment captures the core purpose of consumer credit effectively.