Which of the following statements are TRUE about credit cards? I. When you use a credit card, the money comes directly out of your account. II. Credit cards typically offer more fraud protection than debit cards. III. Transactions made with a credit card can impact your credit score.
True statement about credit card.
III. Transactions made with a credit card can impact your credit score.
Credit score is numerical expression based on a level analysis of an individual's credit file. It is what banks and other lending institutions check to see if the client applying for a loan can be a potential risk to the bank or lending institution.
If your credit score is good this means that you pay your loans on time and do not have bad debts. This will help banks and other companies decide to lend you the amount you want to loan.
If your credit score is bad. Then, the bank or companies will not grant you any loan.