Tejas used his credit card to buy a jacket that cost $100. At the end of the month, he still didn’t have the $100 to pay for the jacket, so he paid nothing. What is MOST likely to happen in this scenario?

Question

A percentage of interest will be added to his $100.

He will still owe exactly $100 on the next month’s bill.

His $100 owed will become $200 owed on the next bill.

His credit score will be unaffected.

Answer 1

The most likely outcome in this scenario is:

A percentage of interest will be added to his $100.

When Tejas does not pay his credit card bill, the unpaid balance will typically accrue interest, which means he will owe more than the original $100 when the next bill arrives.