Having a credit card does not mean you can afford the purchases you charge.

Question

BlackTom AI · Accepted Answer

The statement presented touches on the distinction between credit availability and actual affordability. 
Option 1: True. The core idea is that having a credit card provides a line of credit that allows you to charge purchases up to a limit, but it does not guarantee that you have the funds to cover those charges in your current budget. Relying on credit can lead to debt if charges exceed what you can realistically pay off when the bill arrives. 
Option 2: False. If you answered False, you would be implying that simply possessing a credit card means you can afford any purchases you charge, which ignores the obligation to repay borrowed amounts and the possibility of incurring interest, fees, or debt if balances are carried over. This view overlooks the financial distinction between access to credit and actual cash flow. 
In practical terms, a credit card is a borrowing tool rather than a guarantee of purchasing power that aligns with your current finances. Understanding this helps consumers avoid overspending and maintain healthier budgeting and repayment practices.

FSOS 1301 (001) Final Exam/Quiz

Having a credit card does not mean you can afford the purchases you charge.

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