Which would be a scenario in which open credit would be the best option?

Question

A business needs to make a large purchase and pay it off over time.
An individual needs to have flexible credit with low monthly payments.
A business wants employees to have flexible credit that is paid off quickly.
An individual cannot afford a large purchase but can pay it in six months.

Answer 1

The best scenario for open credit would be:

An individual cannot afford a large purchase but can pay it in six months.

In this situation, open credit allows the individual to make the purchase immediately, while offering the flexibility to pay it off over a specified time period (six months in this case). Open credit can help manage cash flow effectively without incurring high interest if the balance is paid off relatively quickly.