Which of the following is an advantage of credit cards?

The advantage of credit cards lies significantly in their ability to help build a credit history. When individuals use credit cards responsibly, such as making payments on time and keeping balances low relative to their credit limits, it positively impacts their credit score. A good credit history is essential for various financial opportunities, including obtaining loans, securing better interest rates, and improving chances of approval for rental applications or mortgages.

Building a strong credit history through the responsible use of credit cards can lead to financial benefits in the long run, making it easier to obtain favorable terms on future credit. This advantage highlights why credit cards can be a valuable financial tool when used wisely, as they provide an opportunity for individuals to demonstrate creditworthiness to lenders.