12 Which is an advantage of using a credit card over
a debt card?
A You must have enough money in your account
to cover your purchases.
B You don’t have to carry cash.
C Used responsibly, it can help build a positive
credit history.
D You pay interest on the unpaid balance.
C Used responsibly, it can help build a positive credit history.
The advantage of using a credit card over a debit card is:
C) Used responsibly, it can help build a positive credit history.
The correct answer is C) Used responsibly, it can help build a positive credit history.
To determine this answer, you can break down the options and analyze each statement:
A) You must have enough money in your account to cover your purchases.
This statement is referring to a debit card rather than a credit card. With a debit card, you can only spend the money you have in your bank account. This option does not emphasize any distinct advantage of using a credit card.
B) You don't have to carry cash.
This statement is a general benefit of using both credit and debit cards. Both payment methods eliminate the need to carry cash, as you can make purchases electronically.
C) Used responsibly, it can help build a positive credit history.
This statement highlights a key advantage of using a credit card. When you use a credit card and make timely payments, it helps establish a positive credit history, which is beneficial when applying for loans, mortgages, or other credit-related activities in the future.
D) You pay interest on the unpaid balance.
This statement is a disadvantage of using a credit card. If you do not pay off your credit card balance in full each month, you will be charged interest on the remaining balance, which can accumulate over time.
Thus, after analyzing the options, the most accurate answer is C) Used responsibly, it can help build a positive credit history.