Credit cards are designed for people with an income.

Question

BlackTom AI · Accepted Answer

Restating the question and options: The statement to evaluate is 'Credit cards are designed for people with an income.' Answer options are: True and False.
Option 1 (True): This would claim that credit cards are designed exclusively for people who have an income. While many credit card products do require income documentation or an ability to repay, the idea that they are designed only for people with income is inaccurate. There are cards targeted at students, those with limited or no reported income (often with alternative qualifications or co-signers), and secured cards that help individuals build or rebuild credit without a strong current income. Thus, describing credit cards as designed solely for people with income overlooks these products and the broader accessibility features.
Option 2 (False): This asserts that the statement is not entirely accurate. It accounts for the existence of cards and policies that accommodate people without a verifiable income (or with lower income) through options like student cards, secured cards, or cards issued with a guarantor. It also recognizes that even when income is a factor, it does not categorically exclude individuals who may have nontraditional income sources or other means of repayment. Therefore, saying credit cards are designed only for people with income is an overgeneralization.
Evaluating misconceptions: The first option risks implying an absolute requirement of income for all credit cards, which misrepresents the market where exceptions exist. The second option correctly signals that the design and eligibility criteria are broader than a single income threshold and include accommodations for varying financial situations.
Logical nuances: In practice, lenders typically assess creditworthiness, which often includes income as a factor, but they also consider credit history, debt-to-income ratio, and other indicators. The existence of non-income-reliant products demonstrates that income is a factor rather than an absolute prerequisite for all cards.
Summary of reasoning differences: If one believes credit cards are only for those with income, they overlook student and secured cards and the possibility of co-signers or guaranteed approvals. If one accepts the broader view, they acknowledge that the market includes products designed for people with little or no income, as well as those with income who still fail to qualify for premium products. Therefore, the statement is not strictly true and is better categorized as False.

FSOS 1301 (001) Quiz 1

Credit cards are designed for people with an income.

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