ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -You borrow up to a set amount (your credit limit) and pay back the loan at your own pace-provided you pay the minimum due. You will also pay interest on what you owe, and may incur other charges, such as late payment charges.

Detailed explanation-2: -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.

Detailed explanation-3: -With most credit cards, you are only charged interest if you don’t pay your bill in full each month. In that case, the credit card company charges interest on your unpaid balance and adds that charge to your balance.

Detailed explanation-4: -Buy now, pay later (BNPL) is a type of short-term financing. These loans are also called point-of-sale (POS) installment loans. Consumers can make purchases and pay for them over time after an up-front payment.

Detailed explanation-5: -Revolving Credit. This form of credit allows you to borrow money up to a certain amount. Charge Cards. This form of credit is often mistaken to be the same as a revolving credit card. Installment Credit. Non-Installment or Service Credit. 21-Feb-2014