Question
Why is it important to find a credit card with a lower APR?
A lower APR gives you a better credit history.
A lower APR means you pay less in interest.
A lower APR impacts your grace period.
A lower APR means you have more time to pay off your balance.
A lower APR gives you a better credit history.
A lower APR means you pay less in interest.
A lower APR impacts your grace period.
A lower APR means you have more time to pay off your balance.
Answers
GPT-4o mini
The correct statement regarding the importance of finding a credit card with a lower APR (Annual Percentage Rate) is:
**A lower APR means you pay less in interest.**
When you have a credit card with a lower APR, any outstanding balance will accrue interest at a lower rate, which can save you money in interest charges, especially if you carry a balance from month to month. This is particularly important for managing debt and minimizing the overall cost of borrowing.
The other options listed do not accurately reflect the primary benefit of a lower APR. For instance, while a better credit history can result from responsible credit usage, the APR itself does not directly influence your credit history. Additionally, the grace period and time to pay off a balance are not directly related to the APR; those are determined by the card issuer's terms and conditions.
**A lower APR means you pay less in interest.**
When you have a credit card with a lower APR, any outstanding balance will accrue interest at a lower rate, which can save you money in interest charges, especially if you carry a balance from month to month. This is particularly important for managing debt and minimizing the overall cost of borrowing.
The other options listed do not accurately reflect the primary benefit of a lower APR. For instance, while a better credit history can result from responsible credit usage, the APR itself does not directly influence your credit history. Additionally, the grace period and time to pay off a balance are not directly related to the APR; those are determined by the card issuer's terms and conditions.