What is a significant financial risk associated with credit card APR? Option: 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 limit the amount of cashback and rewards earned., It can result in the cancellation of the credit card without prior notice.

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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 limit the amount of cashback and rewards earned.

It can result in the cancellation of the credit card without prior notice.

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What is the consequence of not paying the minimum due payment on a credit card on time?

"Late payment penalties and high interest rates"

"A reduction in credit limit"

"Cancellation of the credit card"

"No impact on the credit score"

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What is a potential drawback of using credit cards for large purchases?

Credit card limits may restrict the purchase amount

High interest rates can accumulate if not paid off promptly

EMI options are not available for all purchases

Reward points are not applicable for large transactions

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What is the consequence of consistently missing payments on credit cards and loans?

"Reduced credit limit"

"No effect on creditworthiness"

"Negative impact on credit score"

"Improved credit score"

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What is a potential consequence of relying heavily on credit card purchases?

"Accumulation of debt and potential impact on credit score"

"Increased savings due to cashback rewards"

"Improved credit score due to frequent credit utilization"

"Lower interest rates compared to other forms of debt"

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Which action can adversely affect credit score maintenance?

Regularly checking your credit report helps monitor for inaccuracies.

Maintaining a low credit utilization ratio reflects responsible credit use.

Consistently paying bills on time demonstrates financial responsibility.

Making late payments can significantly lower credit scores.