Which of the following is incorrectly associated with credit cards?

The choice indicating that credit cards are "great for emergencies" is often misunderstood. While credit cards can provide quick access to funds in a financial crisis, relying on them for emergencies can lead to debt if the balance is not paid in full promptly. Interest rates on credit cards can be quite high, which means that charges incurred during an emergency can quickly escalate, leading to financial strain rather than relief.

In contrast, credit cards are beneficial for building a credit history when used responsibly, as they demonstrate a consumer's ability to repay borrowed money. Furthermore, they often come with rewards programs that incentivize spending, such as cash back or travel points. Notably, as long as cardholders pay their balance in full each month, they can avoid accruing interest, which minimizes the risk associated with credit cards. Thus, while they can be useful tools, handling credit cards with caution is essential to prevent unmanageable debt, particularly during emergencies.