A.
The credit card company extends you a line of credit. You purchase "stuff" and then have the choice to pay the balance in full or a minimum payment each month.
B.
The credit card company extends you a line of credit. You purchase "stuff" and the purchase gets directly paid with funds in your checking account.
C.
The credit card company extends you a line of credit. This is free money that you can use to purchase the "stuff" that you need.
D.
The credit card company extends you a line of credit. You then pay a small percentage of the cost of those purchases in one annual payment.
1 answer
A. The credit card company extends you a line of credit. You purchase "stuff" and then have the choice to pay the balance in full or a minimum payment each month.
This option accurately describes how credit cards work, including the use of a line of credit and the payment options available to the cardholder.
