Which of these credit card features would be best for customers who think they might not be able to pay their balance at the end of each month Brainly?
Explanation: The credit card feature that would be best for customers who think they cannot pay their balance at the end of each month is a low annual percentage rate.
What is likely to happen if a borrower forgets a payment on a credit card account?
What is likely to happen if a borrower misses a payment on a credit card account? The credit card company requires the entire balance be paid in full immediately. The credit card company applies a penalty rate, increasing the card’s interest rate. The customer will never be able to open another credit account.
Which credit card feature determines the amount of interest paid on unpaid balances?
Answer: The annual percentage rate of a credit card feature determines the amount of interest paid on unpaid balances. A credit card’s APR is an annualized percentage rate that is applied monthly—that is, the monthly amount charged that appears on the bill is one-twelfth of the annual APR.
What is one advantage of using a credit card to make purchases?
Some rewards come in the form of cash back, discounts on gas station purchases, and even travel miles. For those who use their cards regularly, earning rewards is one of the primary advantages of credit cards, as cardholders can redeem them for things they were going to purchase already as well as the occasional treat.
What are 3 disadvantages of using a credit card?
9 disadvantages of using a credit card
- Paying high rates of interest. If you carry a balance from month-to-month, you’ll pay interest charges.
- Credit damage.
- Credit card fraud.
- Cash advance fees and rates.
- Annual fees.
- Credit card surcharges.
- Other fees can quickly add up.
- Overspending.
What is positive impact of credit?
Explanation: The higher your score and the greater your demonstrated ability to make payments on time, the better your chance of gaining loan approval at a lower interest rate. This could save you hundreds or even thousands of dollars in interest payments over the course of the loan.
Which of the following is an advantage of using credit?
Advantages of using credit include the ability to make purchases when cash inflow is low and the convenience of not carrying cash or checks. Credit cards can eliminate the need for carrying large amounts of cash.
What are the advantages of using credit?
The Benefits of Using Credit
- Save on interest and fees.
- Manage your cash flow.
- Avoid utility deposits.
- Better credit card rewards.
- Emergency fund backup plan.
- Avoid and limit financial fraud.
- Purchase and travel protections.
- Don’t underestimate the power of good credit.
What is the advantage and disadvantage of credit card?
Established credit-worthiness needed before getting a credit card. Encouraging impulsive and unnecessary “wanted” purchases. High-interest rates if not paid in full by the due date. Annual fees for some credit cards – can become expensive over the years.
What are the dangers of having a credit card?
- Getting into credit card debt. If you have the wrong attitude about credit cards, it could be easy to borrow more than you can afford to pay back.
- Missing your credit card payments.
- Carrying a balance and incurring heavy interest charges.
- Applying for too many new credit cards at once.
- Using too much of your credit limit.
Is it OK to never use a credit card?
Closing a credit card account — whether it’s unused or active — can hurt your credit score primarily because it reduces the amount of available credit you have. Credit utilization is calculated both overall and per card, so removing a big limit from your total can send your utilization up and your score down.
Is it OK to never have a credit card?
Using credit cards responsibly is one way to build your credit history — but it’s not the only way. No financial product is one-size-fits-all, and it’s OK if credit cards aren’t for you. There are other ways to establish credit — and keep your credit scores high — that don’t involve a credit card.
Do you have to pay credit card if you don’t use?
In the past, issuers could charge credit card inactivity fees if you failed to use your card for a long period. However, the Federal Reserve banned this practice in 2010. However, if the card has an annual fee, you will have to pay that fee whether you use the card or not.
Do you have to use credit card every month?
Though ideal credit card usage varies by issuer, it’s recommended that you use your card at least once every three to six months.