Question

which of the following are typically disadvantages of
using a credit card?

must pay balance immediately

does not count toward credit history

high interest charges

no fraud protection

easy to rack up debt

none of the above

Explanation:

• "Must pay balance immediately": Credit cards usually offer a grace period, so this is incorrect.
• "Does not count toward credit history": Responsible credit card use does build credit history, so this is incorrect.
• "High interest charges": If the balance isn't paid in full, credit cards often have high interest rates, so this is a disadvantage.
• "No fraud protection": Most credit cards have fraud protection, so this is incorrect.
• "Easy to rack up debt": The ease of spending with credit cards can lead to accumulating debt, so this is a disadvantage.
• "None of the above": Since "High interest charges" and "Easy to rack up debt" are disadvantages, this is incorrect.

Answer:

• High interest charges
• Easy to rack up debt