6
QuizMultiple Choice

How Credit Works — Quiz

Question 6 • Personal Finance

Which types of credit are most similar to each other?

Answer
A
credit card and mortgage loan
B
auto loan and mortgage loan
C
auto loan and personal loan
D
mortgage loan and personal loan

Explanation

An auto loan and a mortgage loan are both usually secured installment loans: the borrower repays a set amount over time, and the vehicle or home serves as collateral. A credit card is revolving credit, while a personal loan is generally not secured by collateral, so those choices are less similar.

AI-written and checked against the verified answer.

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