ECONOMICS
CREDIT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Pay a large percentage of the total balance owed every month
|
|
|
Make the final amount paid substantially higher than the amount initially charged to the card
|
|
|
help the cardholder create a plan for paying of a credit card in a decent amount of time
|
|
|
allow the cardholder to avoid paying any interest charges
|
Detailed explanation-1: -However, if you only make the minimum payment on your credit cards, it will take you much longer to pay off your balances-sometimes by a factor of several years-and your credit card issuers will continue to charge you interest until your balance is paid in full.
Detailed explanation-2: -If you pay only the minimum amount due for a long time, you will have to pay high interest charges on the outstanding amount. You won’t get any interest-free credit period. Along with this, your credit limit will also be reduced to the amount that you haven’t repaid.
Detailed explanation-3: -Pay your statement balance in full to avoid interest charges In order to have your account reported as current to the credit bureaus (Experian, Equifax and TransUnion) and avoid late fees, you’ll need to make at least the minimum payment on your account.