Which type of credit would you most likely use if you wanted to pay for a large home renovation? (1 point)

Question

Responses

car loan

credit card

personal loan

student loan

explain which is correct

Answer 1

The correct answer is a personal loan. Personal loans are typically used for large expenses such as home renovations because they offer a fixed loan amount with a fixed interest rate, making it easier to budget for the project. Additionally, personal loans typically have longer repayment terms than credit cards, making them more suitable for larger, long-term expenses.