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 should pay the full amount back all at once, while a loan repayment is created for you to pay back smaller amounts over time.
With a credit card, you should pay the full amount back all at once, while a loan repayment is created for you to pay back smaller amounts over time.

A credit card gives you money upfront to spend on purchases, while a loan gives you a card to make purchases.
A credit card gives you money upfront to spend on purchases, 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, like a pair of s…

Answer 1

The correct response highlighting a key difference between using a credit card and getting a loan is:

**With a credit card, you should pay the full amount back all at once, while a loan repayment is created for you to pay back smaller amounts over time.**

This option correctly distinguishes the typical repayment structures between credit cards and loans. When using a credit card, you can carry a balance from month to month, but you are encouraged to pay it back in full to avoid interest. In contrast, loans usually involve fixed repayments over time.