Using what you've previously learned in Live Lesson regarding credit cards and loans, which of the following is a key difference between using a credit card and getting a loan?(1 point)

Question

Responses

With a credit card, you have to pay the full amount back all at once, while a loan allows you to pay back smaller amounts over time.
With a credit card, you have to pay the full amount back all at once, while a loan allows you to pay back smaller amounts over time.

A credit card gives you money upfront, while a loan gives you a card to make purchases.
A credit card gives you money upfront, while a loan gives you a card to make purchases.

Credit cards usually have a fixed amount of money you can borrow, while loans let you borrow as much as you want.
Credit cards usually have a fixed amount of money you can borrow, while loans let you borrow as much as you want.

Loans are used for small purchases, while credit cards are used for large purchases.

Answer 1

The correct response is:

With a credit card, you have to pay the full amount back all at once, while a loan allows you to pay back smaller amounts over time.

This statement accurately describes a key difference between credit cards and loans. Credit cards typically require you to pay at least a portion of the balance each month, but you can choose to carry a balance and pay interest on it. Loans, on the other hand, often involve a set repayment schedule, allowing you to pay back the borrowed amount in smaller installments over time.