Which are considered types of credit available to borrowers? Check all that apply.

Which are considered types of credit available to borrowers? Check all that apply.

a. bonds

b. credit cards

c. mortgages

d. cash

e. auto loans

f. gift cards

g. personal loans

Answer:- Credit Cards, Mortgages, Auto Loans, and personal loans

Different types of credit are offered to borrowers but which have several common characteristic. These include credit cards, mortgages, auto loans and personal loan. Among the choices offered, credit cards mortgages auto loans personal loan are forms of credits while bonds cash and gift card do not fall under this category.

With credit cards, borrowers can buy goods up to a certain amount of credits and then repay back their cash within interest. Credit cards can be unsecured, which means no collateral is required or by funds on deposit. Loans with a long repayment period known as mortgages are used by borrowers to purchase real estate. Mortgages utilize the home being bought as security for a loan. Auto loans enable the acquisition of new or used cars, while securing a loan with this collateral. In such ways interest rates on auto loans may vary depending on credit score, loan term and other arguments.

Personal loans are bulk cash payments which have to be repaid over a fixed period at the same interest rate. Personal loans are for many uses such as to consolidate debt, purchase big ticket items or cover an emergency. Compared to secured loans such as mortgages and auto-loans, personal loans are unsecured hence have relatively higher interests. Credit cards, mortgages, auto loans and personal loans all serve diverse purposes but they are also forms of credit that provide borrowers with money which is later reimbursed by interest.

Bonds, cash, and gift cards do not include credit as there is no borrowing or future reimbursement. Bonds are security investments; cash is liquid, and gift cards serve as stored value rather than lines of credit. Therefore, these different types of credit from the given list are credit cards, mortgages, auto loans and personal credits. The rest of the alternatives are not considered as credit.