How's a Ch.7 bankruptcy compare to a Ch.13 bankruptcy? There are many advantages to using credit, in general; however, there are also several disadvantages. Regarding advantages, credit allows for shopping convenience. National credit cards such as MasterCard and Visa are accepted at many locations. Credit can also increase complete consumption benefits and act as a hedge against inflation. Additionally, credit provides quick and easy access to emergency funds. Nonetheless, there are several disadvantages with credit; too much debt can cause individuals to have to declare bankruptcy. Those with too much credit may spend too much money. One needs to have the discipline to stay within a budget. Also, the interest costs from credit can be quite substantial. It's important for individuals to try to pay off their credit card balances in full each month.