Question

In which situation is it BETTER to use a credit card instead of a debit card?

Jackson likes earning rewards on his purchases.
Jane prefers to shop locally rather than online.
Blake makes automatic transfers weekly to his checking account.
) Jena's tight budget requires thinking carefully about each purchase.

Answer 1

Answer: Choice A

Jackson likes earning rewards on his purchases.

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Step-by-step explanation:

Debit cards do not give out reward points for using them. Credit cards on the other hand do offer such a feature. So if Jackson wants reward points, he'll need to use a credit card. This is why choice A is the answer.

Choice B is ruled out because shopping locally could involve either type of card, or simply cash, depending the merchant's payment preferences. There's no incentive to use a credit card here.

Choice C is ruled out because a debit card is tied to a checking account. Blake making weekly transfers to this account seems to heavily imply he uses it a lot; therefore, he's likely using a debit card here.

Choice D is ruled out because Jena being careful with money would likely use a debit card. With debit cards, you use only the money in the checking account. No money is borrowed like with a credit card. This means there's no worry about going into debt when using a debit card.