Question

which of the following is a major drawback of buying an item with a credit card rather than with cash?

the payment will hurt the cardholders credit score.

the charge will result in additional taxes.

the payments must be made in monthly installments.

the charge may result in interest payments.

Explanation:

• Analyze Option 1: Regular, on - time credit card payments usually help build a good credit score, not hurt it. So this option is incorrect.
• Analyze Option 2: The method of payment (credit card or cash) does not affect the amount of taxes on a purchase. Taxes are based on the price of the item, not the payment method. So this option is incorrect.
• Analyze Option 3: While some credit card - related loans or financing plans require monthly installments, for regular credit card use, you can pay the full balance each month. So this is not a universal drawback of using a credit card.
• Analyze Option 4: If you do not pay the full balance of your credit card by the due date, the remaining balance will accrue interest. This is a common and major drawback of using a credit card (if you carry a balance) compared to using cash, where you don't have to worry about interest.

Answer:

The charge may result in interest payments.