Question

select all that apply
installment loans are a cheaper alternative to credit cards because:
□ their interest rates are often lower than credit card rates
□ they often carry no interest rate
□ they are cheaper over many months or years when an extended payment period is needed
□ installment loans are open-ended, meaning there is no due date
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Explanation:

• Installment loans typically have lower fixed interest rates compared to the high variable rates of credit cards.
• Installment loans are not interest-free; they have set interest structures.
• For long-term repayment, the lower, fixed rates of installment loans make them cheaper than credit cards with compounding high interest.
• Installment loans are closed-ended, with fixed repayment schedules and due dates, unlike open-ended credit cards.

Answer:

A. their interest rates are often lower than credit card rates
C. they are cheaper over many months or years when an extended payment period is needed