Wjavascript:void(0)hich 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 cannot use them to buy something that costs more money that you have in the bank.
You cannot use them to buy something that costs more money that you have in the bank.

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

Answer 1

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

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

Paying off your credit card balance quickly helps you avoid paying interest on the amount you owe, which can be quite high if carried over month to month.

Here's a brief explanation of why the other statements are not true:

1. When you use them, you never really know how much you owe. - This is misleading; you can keep track of your spending and know your balance by checking your account.

2. They generally charge 3% to 5% interest. - Interest rates on credit cards can vary widely, often ranging from around 15% to 25% or more, depending on the card and the individual's credit history.

3. You cannot use them to buy something that costs more money than you have in the bank. - This is false; credit cards allow you to borrow funds up to your credit limit, regardless of your bank balance.