Jordan Gets Confused and Uses his Credit Card to get $40 in Cash from an ATM Instead of Using his Debit Card...Answer Explained
by Niranjani
Updated Oct 17, 2023
Jordan Gets Confused and Uses his Credit Card to get $40 in Cash from an ATM Instead of Using his Debit Card. Based on this agreement, what is the impact of this decision?
A. An A.P.R. of 25.24% will be applied on the $40 until it is paid back ONLY
B. There is no impact since credit card and debit card terms tend to be the same
C. A $10 cash advance fee will be charged AND an A.P.R. of 25.24% will be applied on the $40 until it is paid back
D. An A.P.R. of 25.24% will be applied on the $40 until it is paid back ONLY.
The answer is - $10 cash advance fee will be charged AND an A.P.R. of 25.24% will be applied on the $40 until it is paid back.
Credit Card
A credit card is like a flat, plastic or metal card given to you by a bank or a money company. It lets you borrow money to buy things from stores that agree to take these cards as payment. Instead of using cash, you use the card to pay for what you want. Later on, you pay back the money you borrowed.
Debit Card
A debit card is like a card that's connected to your checking account. It might look like a credit card, but it doesn't work the same way. The money you can use with a debit card depends on how much you have in your bank account, not on a limit like credit cards have. So, if you have $100 in your account, you can spend up to $100 with your debit card, but you can't spend more than that.
Jordan Gets Confused and Uses his Credit Card to get $40 in Cash from an ATM Instead of Using his Debit Card. Based on this agreement, what is the impact of this decision -FAQ
The answer is $10 cash advance fee will be charged AND an A.P.R. of 25.24% will be applied on the $40 until it is paid back