Question

Which is true about credit card repayment?(1 point)
Responses

You must pay the balance in full each month or the bank will take the card away.
You must pay the balance in full each month or the bank will take the card away.

You must pay the balance in full before the grace period ends if you want to avoid paying interest
You must pay the balance in full before the grace period ends if you want to avoid paying interest

You must pay the balance in full each month or the APR will go up.
You must pay the balance in full each month or the APR will go up.

You must pay the balance in full each month or your account will go to collections.

Answer 1

You must pay the balance in full before the grace period ends if you want to avoid paying interest.

Explanation: Most cards give a grace period on purchases — if you pay the full statement balance by the due date you avoid interest on those purchases. If you carry a balance (or take cash advances, which usually have no grace period) interest will accrue.