Which statement best compares credit cards and store cards as ways of transferring money?

Which statement best compares credit cards and store cards as ways of transferring money?

• A. Credit cards are generally more widely accepted and often offer better interest terms than store cards
• B. Store cards are accepted everywhere and have lower interest rates
• C. Credit cards are always non-revolving, while store cards are revolving
• D. Store cards do not affect credit scores

Answer: (A)

The idea being tested is how widespread acceptance and the cost of carrying a balance differ between credit cards and store cards. The best choice says credit cards are generally more widely accepted and often offer better interest terms than store cards. Credit cards are issued by major networks and are accepted at a vast range of merchants worldwide, so you can transfer or pay across many more places. Store cards, by contrast, are typically tied to a single retailer or a small group of stores, which limits where you can use them for transfers or purchases. On cost, general-purpose credit cards usually provide more favorable interest terms and often come with rewards or better promotional offers, whereas store cards tend to have higher ongoing interest rates and fewer benefits, making carrying a balance more expensive. The other statements aren’t correct because store cards aren’t accepted everywhere, credit cards aren’t non-revolving, and store cards can affect credit scores just like other credit products.

The idea being tested is how widespread acceptance and the cost of carrying a balance differ between credit cards and store cards. The best choice says credit cards are generally more widely accepted and often offer better interest terms than store cards. Credit cards are issued by major networks and are accepted at a vast range of merchants worldwide, so you can transfer or pay across many more places. Store cards, by contrast, are typically tied to a single retailer or a small group of stores, which limits where you can use them for transfers or purchases.

On cost, general-purpose credit cards usually provide more favorable interest terms and often come with rewards or better promotional offers, whereas store cards tend to have higher ongoing interest rates and fewer benefits, making carrying a balance more expensive. The other statements aren’t correct because store cards aren’t accepted everywhere, credit cards aren’t non-revolving, and store cards can affect credit scores just like other credit products.