What type of credit allows consumers to purchase items and pay over time?

The correct choice is a credit card, as it enables consumers to make purchases upfront while deferring payment until a later date. This type of credit allows individuals to borrow funds from a financial institution up to a certain limit, enabling them to buy goods or services immediately and then repay the amount over time, often with an option for making minimum payments.

Credit cards typically come with an interest rate that applies if the balance is not paid in full by the due date, which can add to the overall cost of purchases if managed irresponsibly. The flexibility of paying over time, combined with additional features like rewards points or cashback, makes credit cards a popular option for both consumers looking to manage cash flow and those aiming to build their credit history.

In contrast, a debit card draws directly from a user’s bank account, so it does not allow for deferred payments. A store card typically functions similarly to a credit card but is usually limited to use at a specific retailer, which may offer promotional financing options; however, it does not provide the broader purchasing power of a credit card. A prepaid card requires funds to be loaded onto it in advance and cannot be used for purchases beyond that amount, thus lacking the borrowing feature altogether.