The Disadvantages & Advantages of Credit Cards

Front

What is a potential negative consequence of using credit cards excessively?

Back

A snowball effect in which you become buried deep in credit card debt.

Front

What often happens shortly after opening a credit card?

Back

You receive multiple offers to open other credit cards.

Front

How can credit cards assist in financial management?

Back

They allow you to track your expenses, which can help you maintain your budget.

Front

What risk do credit cards pose to financial health?

Back

They can place your financial health into serious jeopardy.

Front

What is a primary cause of serious credit card debt?

Back

Irresponsible spending habits.

Front

What is the advantage of having a credit card for emergencies?

Back

It provides immediate access to funds when unexpected expenses arise.

Front

What is a common feature of credit cards that can lead to debt?

Back

High-interest rates on unpaid balances.

Front

What is the importance of understanding credit card terms and conditions?

Back

It helps users avoid hidden fees and understand their repayment obligations.

Front

How can credit cards impact your credit score?

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Responsible use can improve your credit score, while misuse can damage it.

Front

What is a credit limit?

Back

The maximum amount of credit that a lender extends to a borrower.