Question

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) 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 highlights the key difference in repayment structures between credit cards and loans. Credit cards typically allow for a revolving balance, while loans are structured for repayment over a set term with fixed payments.