Which Statement Applies Only To Restricted Cardholders?
In the world of credit cards, there are two types of cardholders: unrestricted and restricted. Unrestricted cardholders have full access to all of the benefits and features offered by their credit card issuer. Restricted cardholders, on the other hand, have some of their access limited. This can be due to a variety of factors, such as their credit history, income, or age.
One of the most common ways that restricted cardholders are limited is in their credit limit. Restricted cardholders typically have lower credit limits than unrestricted cardholders. This is because credit card issuers are taking on more risk when they issue a credit card to a restricted cardholder.
Another way that restricted cardholders are limited is in the types of transactions they can make. Restricted cardholders may not be able to use their credit card for certain types of purchases, such as cash advances or international travel. They may also have to pay a higher interest rate on their purchases.
Which statement applies only to restricted cardholders?
The answer to this question depends on the specific credit card issuer and the specific restrictions that apply to the card. However, there are some general statements that can be made about restricted cardholders.
- Restricted cardholders typically have lower credit limits than unrestricted cardholders.
- Restricted cardholders may not be able to use their credit card for certain types of purchases.
- Restricted cardholders may have to pay a higher interest rate on their purchases.
Here are some specific examples of statements that apply only to restricted cardholders:
- "This card is subject to a maximum credit limit of $1,000."
- "This card cannot be used to make cash advances."
- "This card has an annual fee of $50."
Conclusion
If you are considering applying for a credit card, it is important to understand the difference between restricted and unrestricted cardholders. Restricted cardholders have some of their access limited, so it is important to make sure that the card you choose meets your needs.
