Financial Counseling Certification Program (FiCEP) Practice Exam

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Prepare for the Financial Counseling Certification Program. Use our test with multiple choice questions and explanations to boost your confidence and excel in your exam. Start today!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is one advantage of using a credit card?

The ability to accumulate debt
Peace of mind knowing funds are available
Higher interest rates
Increased likelihood of overspending

The correct answer is: Peace of mind knowing funds are available

One of the main advantages of using a credit card is the peace of mind that comes from knowing funds are available for purchases. This ability to access a line of credit allows cardholders to make purchases even if they do not have immediate cash on hand, providing flexibility in financial management. It can be particularly beneficial during emergencies or when unexpected expenses arise, as credit cards often have higher credit limits compared to checking accounts. Additionally, responsible credit card use can help build credit history, which is crucial for future borrowing and secured loans. Consequently, this aspect emphasizes how credit cards can enhance financial planning when managed wisely.