Which of the following is true of credit cards?(1 point)

Question

Responses

When you use them, you never really know how much you owe.
When you use them, you never really know how much you owe.

They generally charge 3% to 5% interest.
They generally charge 3% to 5% interest.

You will save money if you pay the balance off quickly.
You will save money if you pay the balance off quickly.

You cannot use them to buy something that costs more money that you have in the bank.

Answer 1

The true statement about credit cards among the provided options is:

You will save money if you pay the balance off quickly.

Paying off your credit card balance quickly helps you avoid accruing interest on any unpaid balance, which can save you money in the long run.

The other statements are not accurate:

• While it's true that many people may struggle to keep track of their credit card balances, you can always check your balance through your credit card provider.
• Interest rates on credit cards can vary widely, often exceeding 15% or even 20%, rather than being limited to 3% to 5%.
• You can often use a credit card to make purchases even if you do not have sufficient funds in your bank account, as long as you have available credit on the card.