Question

which of the following are typically advantages of using a credit card?

□ cant go into debt

□ ability to build a credit history

□ cant spend more than you have

□ cashback and other rewards

□ no interest charged

□ none of the above

Explanation:

• "Can't go into debt": Credit cards allow borrowing, so one can go into debt if not paid off, so this is incorrect.
• "Ability to build a credit history": Using a credit card responsibly (paying bills on time, etc.) helps build a positive credit history, which is an advantage.
• "Can't spend more than you have": Credit cards let you spend beyond your current balance (up to credit limit), so this is incorrect.
• "Cashback and other rewards": Many credit cards offer cashback, points, or other rewards for purchases, which is an advantage.
• "No interest charged": Interest is charged if the balance isn't paid in full by the due date, so this is incorrect.
• "None of the above": Since there are valid advantages (building credit history, cashback), this is incorrect.

Answer:

B. Ability to build a credit history, D. Cashback and other rewards