What is the primary use of a credit card?

The primary use of a credit card is to make purchases and pay for them later. This means that when a consumer uses a credit card, they are effectively borrowing money from the credit card issuer to buy goods or services. This allows individuals to manage cash flow more effectively, as they can make immediate purchases while planning to pay off the credit card balance in the future.

Using a credit card also often comes with benefits such as rewards, cashback offers, and the ability to build credit history, which can be advantageous for future financial activities. Paying later can also provide flexibility in budgeting, as long as the user is mindful of the repayment schedule to avoid interest charges.

In contrast, other options focus on different financial activities that are not the primary function of a credit card. Saving for future expenses typically involves a savings account or investment vehicle, obtaining cash from an ATM may relate to a debit card more than a credit card, and investing in stocks is generally handled through brokerage accounts rather than credit cards.