What type of credit are personal loans and credit cards?

Secured Unsecured Variable Fixed

Which of the following typically requires more extensive documentation: a personal loan or a credit card?

Personal Loan Credit Card Both require equal documentation Neither requires documentation

What is a key difference in interest rates between personal loans and credit cards?

Personal loans have higher interest rates, while credit cards have lower interest rates. Personal loans have lower interest rates, while credit cards have higher interest rates. Both have similar interest rates. Interest rates are not applicable to these credit types.

Which credit option generally offers a longer repayment tenure?

Personal Loan Credit Card Both offer similar repayment tenures Repayment tenure is not a factor in these credit types

How are funds disbursed in the case of a personal loan?

Directly to the merchant or seller In installments over time As a lump sum to the borrower's account Through a third-party payment processor

What is a significant financial risk associated with credit card APR?

It can lead to very high interest charges if payments are missed or delayed. It can negatively impact credit score even if payments are made on time. It can result in the cancellation of the credit card without prior notice. It can limit the amount of cashback and rewards earned.

Which of these is a common use case for a personal loan?

Making small everyday purchases Paying for a daily commute Consolidating multiple existing debts Earning cashback and rewards points

What is a typical advantage of using a credit card for purchases?

Receiving funds directly into a bank account Avoiding interest charges altogether The ability to finance purchases through EMIs Obtaining a large lump sum of money quickly