ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Someone who misses a few monthly payments.
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Someone who has stopped paying their monthly payments.
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Someone who pays more than the minimum payment each month.
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Someone who pays their bill in full each month.
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Detailed explanation-1: -Deadbeat is a slang term for a credit card user who pays off their balance in full and on time every month, thus avoiding the need to pay off the interest that would have accrued on their accounts.
Detailed explanation-2: -Credit card companies have a term for these zero-balance users: “deadbeats.” These so-called “deadbeat” users open rewards and cash-back credit cards to accrue points, miles, and other perks, but, because they pay their balances in full and on time every month, pay nothing in interest back to the companies.
Detailed explanation-3: -A transactor is a consumer who pays their credit card statement balance in full and on time every month. Transactors do not carry a balance from month to month; they always pay their credit card bills in full by the due date. Transactors do not pay interest or late fees.
Detailed explanation-4: -Paying your balance in full is a much more responsible way of managing your credit. Not only do you not worry about interest charges, you keep your credit utilization low, boost your credit score-the number that many creditors and lenders use to approve your applications-and avoid getting into credit card debt.