Question

Ralph is purchasing a new gaming system for $300.00. He is trying to decide whether he wants to use cash or his credit card to pay. He has $400.00 available in his checking account to pay for the system in full.
Which of the following is not an argument that justifies Ralph’s use of his credit card to purchase the gaming system?
a.
If he uses his credit card, he won’t have to walk around with $300 in his wallet.
b.
With credit, he is not required to pay off his balance for a very long time. That’s $300 more in his pocket.
c.
Ralph can afford to pay off the credit card purchase immediately, and it will help build a good credit rating.
d.
If he uses his credit card, it will be easier to pay for extra items (cords and controllers) that he wasn’t expecting to have to purchase.

Answer 1

Answer: b.

Explanation: Option b encourages carrying a balance and delaying payment, which typically leads to interest charges and higher cost — not a valid financial justification. The other choices are reasonable arguments for using a credit card (security/convenience, ability to pay for extras, and building credit if he pays it off).