ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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by paying ONLY the minimum due
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by paying half of what you owe
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in full and ON time
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when you remember
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Detailed explanation-1: -You’ll avoid paying interest if you pay your credit card balance off in full each month by the due date. Establish a better credit score: Using your credit card and repaying your balance will help you establish a good payment history.
Detailed explanation-2: -It’s a good idea to pay off your credit card balance in full whenever you’re able. Carrying a monthly credit card balance can cost you in interest and increase your credit utilization rate, which is one factor used to calculate your credit scores.
Detailed explanation-3: -By paying at least the minimum-and on time-you’ll build a good credit history and raise your credit score. Paying more than the minimum will reduce the interest you owe on your credit card balance. If you pay your balance in full every month, you can avoid interest payments altogether.
Detailed explanation-4: -When possible, it’s best to pay your credit card balance in full each month. Not only does that help ensure that you’re spending within your means, but it also saves you on interest.
Detailed explanation-5: -Reducing the interest you pay If you typically carry a balance on your credit card from one month to the next, then making multiple payments during each billing cycle can reduce your interest charges overall. That’s because interest accrues based on your average daily balance during the billing period.