Question

how is a line of credit similar to a credit card? a. interest is charged only on the amount you actually borrow. b. the interest rates are the same. c. they both require co - signers. d. lenders dont check your credit score.

Explanation:

Credit cards and lines of credit both operate as revolving credit, where interest is only applied to the portion of the credit limit that is used (the borrowed amount), not the full approved limit. Option B is incorrect because their interest rates can differ significantly. Option C is wrong as neither requires co-signers as a universal rule. Option D is false, as lenders almost always check credit scores for both products to assess risk.

Answer:

A. Interest is charged only on the amount you actually borrow.