Which of the following is true about credit cards
To determine which of the following statements is true about credit cards, I would need more specific information about the statements you are referring to. However, I can provide you with some general information about credit cards to help you evaluate the statements.
1. Credit cards allow you to make purchases using borrowed money: One of the defining features of credit cards is that they provide you with a line of credit, allowing you to borrow money from the card issuer to make purchases. When you use a credit card to make a purchase, you are essentially borrowing money that you agree to repay later.
2. Credit cards can charge interest on unpaid balances: If you do not pay off your credit card balance in full by the due date, the card issuer may charge you interest on the remaining balance. This interest can accumulate over time, increasing the total amount you owe.
3. Credit cards offer various benefits and rewards: Many credit cards come with rewards programs that allow cardholders to earn cash back, points, or miles on their purchases. These rewards can be redeemed for various benefits such as travel, merchandise, or statement credits. However, it's important to note that not all credit cards offer rewards.
4. Credit cards can help build credit history: Using a credit card responsibly, such as making timely payments and keeping your balance low, can help establish and improve your credit history. A good credit history is important when applying for loans, mortgages, or other forms of credit in the future.
5. Credit cards can have fees and charges: Credit cards often come with fees and charges, such as annual fees, late payment fees, foreign transaction fees, and balance transfer fees. Before getting a credit card, it is important to understand the associated fees and charges.
By considering these general facts about credit cards, you can evaluate the statements you have and determine which one is true based on the specific context of the statements provided.