Joanna is trying to decide between getting a credit card and getting a line
of credit, and she has asked you to help her make a list of pros and cons.
What are some pros and cons for each type of credit service? (1 point)
A) Lines of credit can be used at the point of sale, while credit cards
cannot. Credit cards typically have a lower interest rate while lines of
credit typically have higher interest rates.
B) Credit cards can be used at the point of sale, while lines of credit cannot.
○ Lines of credit typically have a lower interest rate while credit cards
typically have higher interest rates.
C) Lines of credit can be used at the point of sale, while credit cards
cannot. Lines of credit typically have a lower interest rate while credit
cards typically have higher interest rates.
D) Credit cards can be used at the point of sale, while lines of credit
cannot. Credit cards typically have a lower interest rate while lines of
credit typically have higher interest rates.
C) Lines of credit can be used at the point of sale, while credit cards cannot. Lines of credit typically have a lower interest rate while credit cards typically have higher interest rates.
Pros of Lines of Credit:
- Can be used at the point of sale
- Typically have lower interest rates
Cons of Lines of Credit:
- Not as widely accepted as credit cards
- May have higher fees or charges
Pros of Credit Cards:
- Can be used at the point of sale
- Often come with rewards or cashback offers
- Better fraud protection
Cons of Credit Cards:
- Higher interest rates
- Can lead to overspending if not managed properly
- May have annual fees