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

Question

Responses

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

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 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 before the grace period ends if you want to avoid paying interest

Answer 1

The correct response is:

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

If you don't pay the full balance by the due date, you may incur interest charges, but your account won't automatically go to collections, you won't necessarily lose your card immediately, and the APR won't automatically increase just because of a missed payment unless specified in your credit agreement.