Which of the following statements is true about bank credit cards like VISA and MasterCard?
A) They are an excellent source of emergency funds for unexpected expenses.
B) Their interest rate is generally lower than a loan at a credit union.
C) Like home equity loans, the interest paid on credit cards is tax deductible.
D) Their interest rate is lower than home equity lines of credit.

Question

Quizplus · Accepted Answer

Bank credit cards like VISA and MasterCard are often used as a source of emergency funds for unexpected expenses, despite their high interest rates compared to other forms of credit. The other options are incorrect because credit card interest rates are generally higher than those for loans at credit unions and home equity lines of credit, and unlike home equity loans, the interest paid on credit cards is not tax deductible.

Which of the Following Statements Is True About Bank Credit