How to Get and Use Credit Cards

This tutorial explains how credit cards work, including their benefits and drawbacks. It covers the process of obtaining a credit card, especially for first-time borrowers, and emphasizes the importance of building a credit history. The video also discusses responsible credit card usage, highlighting the dangers of only making minimum payments and accruing high-interest debt. It concludes with advice on avoiding common credit card pitfalls and understanding the impact on one's credit score.

What is a common challenge for first-time borrowers when trying to get a credit card?

• Limited card options

• Lack of credit history

• Excessive fees

• High interest rates

What is a cosigner's role in obtaining a credit card?

• To guarantee the debt repayment

• To share the credit limit

• To increase the interest rate

• To pay the annual fee

Why is it important to pay off your credit card bill as soon as possible?

• To avoid late fees

• To increase your credit limit

• To earn rewards points

• To prevent interest from accumulating

What is a positive aspect of using credit cards?

• They have no interest rates

• They eliminate the need for a bank account

• They offer unlimited spending

• They help build credit history

What is a potential risk of relying heavily on credit cards?

• Access to more credit cards

• Improved credit score

• Increased savings

• Accumulation of high-interest debt