ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Do not pay anything
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Pay the minimum payment after its due date
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Pay the minimum balance every month
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Pay the balance in full every month
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Detailed explanation-1: -Paying the full amount will help you avoid any interest charges. If you can’t pay your statement balance off completely, try to make a smaller payment (not less than the minimum payment).
Detailed explanation-2: -The best way to avoid paying interest on your credit card is to pay off the balance in full every month. You can also avoid other fees, such as late charges, by paying your credit card bill on time.
Detailed explanation-3: -Pay your statement balance in full to avoid interest charges But in order to avoid interest charges, you’ll need to pay your statement balance in full. If you pay less than the statement balance, your account will still be in good standing, but you will incur interest charges.
Detailed explanation-4: -Yes, if you pay the minimum payment on your credit card statement, you do get charged interest. By paying the minimum you keep your account in good standing but you do not avoid accruing interest. The exception to this is if you have a card with a 0% introductory APR, which usually is for a set period of time.