Which of the following is true of credit cards?(1 point)

Question

Responses

You will save money if you pay the balance off quickly.
You will save money if you pay the balance off quickly.

They generally charge 3% to 5% interest.
They generally charge 3% to 5% interest.

When you use them, you never really know how much you owe.
When you use them, you never really know how much you owe.

You cannot use them to buy something that costs more money that you have in the bank.
You cannot use them to buy something that costs more money that you have in the bank.

Answer 1

The true statement about credit cards is:

You will save money if you pay the balance off quickly.

Paying off your balance quickly helps you avoid paying interest on your purchases, which can lead to significant savings. The other statements are not accurate:

• They generally charge 3% to 5% interest. (Credit card interest rates can vary widely, often ranging from 15% to over 25% or more, depending on the card and the user's creditworthiness.)

• When you use them, you never really know how much you owe. (Credit card statements provide a clear balance of what is owed.)

• You cannot use them to buy something that costs more money than you have in the bank. (You can use a credit card to make purchases beyond your available bank balance, as credit cards allow you to borrow up to a certain limit.)