Which of the following is the best advice about the use of credit cards?
A) Except for very small purchases, credit cards should always be used instead of cash.
B) The best approach to credit cards is never even to apply for one.
C) Credit cards are an important part of a personal financial system, but pay the balance in full during the period when no interest is charged.
D) Credit cards are most useful when making large purchases (over $500), because they allow you to spread out the payments to fit into your budget.

Question

Quizplus · Accepted Answer

Credit cards are an important element in a personal financial system. For example, they can be used as a form of identification, can help track purchases, and can offer some protection against loss in the event of theft or robbery. However, credit cards also have disadvantages: they generally carry relatively high interest rates and can encourage people to spend beyond their means. Thus, people should make sure they pay off the balance each month to avoid these problems.

Which of the Following Is the Best Advice About the Use