What does consumer credit allow customers to do?

Consumer credit primarily allows customers to buy goods and services with the promise to pay later. This means that when individuals use consumer credit, they can make purchases immediately without needing to pay upfront in full. Instead, they agree to pay the amount over time, typically with the understanding that they will make regular payments to the lender or creditor.

This concept is fundamental in consumer behavior because it enables people to manage their finances more flexibly. For instance, they can buy essential items such as appliances or furniture even if they do not have enough cash readily available. The structure of consumer credit often involves a repayment plan that may include interest charges or fees, which are aspects buyers must consider when making purchases using this method.

The other options do not accurately represent the function of consumer credit. Immediate payment refers to cash transactions rather than credit. Borrowing without interest rates is not a standard feature of consumer credit, as most credit facilities come with interest costs. Finally, investing money in savings accounts is unrelated to the borrowing aspect of consumer credit, as it involves saving rather than spending on credit.