Question

Choose the advantages of using a credit card. Check all that apply.
builds credit history
no monthly payments
no interest fees
small payments over time
emergency funds intact

Answer 1

Checked:
- builds credit history — Yes. Responsible use and on-time payments help build a credit record.
- small payments over time — Yes. Cards let you carry a balance and make smaller payments (though interest can apply).
- emergency funds intact — Yes. A card can cover unexpected expenses so you don't deplete cash savings immediately.

Not checked:
- no monthly payments — No. Credit cards normally require at least a minimum monthly payment.
- no interest fees — No. Interest is charged on carried balances (unless you pay in full each cycle or have a special 0% offer).