Which of the following is true about credit cards?
A) It has no spending limit.
B) It has no interest charged on unpaid balances.
C) It is the same as a charge card.
D) It protects the consumer by an automatic 30-day dispute period.

Question

Quizplus · Accepted Answer

Credit cards do not have a spending limit, as there is typically a credit limit set by the issuer. Interest is charged on unpaid balances, so B is incorrect. Credit cards and charge cards are not the same, as charge cards require full payment each month while credit cards allow for a minimum payment and carry a balance. However, D is true - credit cards offer protection for consumers through a 30-day dispute period in case of fraudulent charges or errors on the statement.

Which of the Following Is True About Credit Cards