Credit cards and loans

What is NOT a benefit commonly offered by credit cards?

• Discounts at stores

• Cash back on purchases

• Free airline tickets

• Interest-free loans forever

Which of the following is NOT one of the five C's of credit?

• Compensation

• Capacity

• Character

• Collateral

What does 'Collateral' mean in the context of borrowing money?

• A type of credit card

• The interest rate applied to the loan

• The total amount of money borrowed

• A form of security to guarantee the loan

What can be the consequence of not managing your loan repayments effectively?

• Forfeiture of collateral

• Decreasing the loan interest

• Earning more rewards

• Improving your credit score

What should you ideally do to manage your credit card debt effectively?

• Only pay the minimum amount each month

• Use the credit card for every purchase

• Increase your credit limit frequently

• Pay off the entire balance monthly if possible