Below is a Schumer box comparison of two credit cards.

Question

Credit card A Credit card B
Annual Percentage Rate (APR)
\[14.99\%\]
\[19.99\%\]
Grace period
\[25\] days
\[18\] days
Annual fee
\[\$50\]
\[\$0\]
Late fee
\[\$25\]
\[\$30\]
Foreign transaction fee
\[\$0\]
\[\$2.00\] per transaction
Tya pays her credit card bills in full each month and does not like having to pay any additional costs for having a credit card. She does not travel outside of her country.
Which credit card is the best choice for Tya?
Choose 1 answer:
Choose 1 answer:
(Choice A) credit card A
A
credit card A
(Choice B) credit card B
B
credit card B

Answer 1

The best choice for Tya would be credit card A.

Reasoning:
- Credit card A has a lower APR (14.99% compared to 19.99% for credit card B), which means Tya would pay less in interest charges if she carries a balance on her card.
- Credit card A has a longer grace period (25 days compared to 18 days for credit card B), giving Tya more time to pay off her balance without incurring any interest charges.
- Credit card A has a lower annual fee ($50 compared to $0 for credit card B), meaning Tya would have to pay less in annual fees.
- Credit card A has a lower late fee ($25 compared to $30 for credit card B), which means Tya would be charged less if she happens to pay her bill late.
- Credit card A has no foreign transaction fee, which is not relevant to Tya since she does not travel outside of her country.