10 Questions
What is a disadvantage of using credit according to the text?
Living beyond your income and spending future income now
Which type of credit card requires you to pay the entire bill each month except for travel-related expenses?
Travel and Entertainment Cards
What is an example of serious consequences of misusing credit as mentioned in the text?
Damaging your credit score
Which type of credit card permits you to charge purchases only with the issuing merchant?
Retail Store Cards
What type of loans are included under installment loans according to the text?
Auto loans and student loans
What type of loan has a predetermined amount of payment and number of payments, such as an automobile loan?
Installment loan
Which type of credit does not have a fixed number of payments and includes features like minimum monthly payments and finance charges?
Revolving credit
What is the purpose of student loans compared to other types of loans?
To finance education with deferred payments
Which type of credit involves a member's earned service and might include prior and purchased service?
Service credit
What distinguishes revolving credit from installment loans?
Having varying interest rates
Test your knowledge on the disadvantages of using credit with this quiz. Topics covered include reduction of future income, expenses associated with credit, temptations of overspending, and risks of misusing credit such as bankruptcy and damaged credit score.
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