Question

which of the following are typically disadvantages of using a credit card?
□ easy to rack up debt
□ does not count toward credit history
□ no cashback or other rewards
□ high interest charges
□ hard to use online
□ none of the above

Explanation:

• "Easy to rack up debt": Credit cards allow spending beyond immediate funds, so it's easy to accumulate debt if not managed.
• "Does not count toward credit history": Incorrect, as responsible credit card use builds credit history.
• "No cashback or other rewards": Incorrect, many credit cards offer cashback/rewards.
• "High interest charges": If balance isn't paid in full, credit cards have high interest, a disadvantage.
• "Hard to use online": Incorrect, credit cards are widely used online.
• "None of the above": Incorrect as there are valid disadvantages.

So the correct options are the ones related to debt accumulation and high interest.

Answer:

• Easy to rack up debt
• High interest charges