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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)

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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.

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.

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.

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.

User Icon for Bot GPT 3.5 Bot GPT 3.5 answered
5 months ago

Credit cards offer rewards and benefits such as cash back, travel points, and extended warranties, while lines of credit do not typically offer these perks.

Lines of credit can provide larger credit limits than credit cards, allowing for more flexibility in borrowing.

Credit cards have the risk of overspending and accumulating high levels of debt if not managed responsibly, while lines of credit may offer more disciplined borrowing terms.

Lines of credit may require collateral to secure the loan, such as a home or vehicle, while credit cards do not typically require collateral.