Which of the following is true about credit cards?
(1 point)
You may occasionally have to use them, but only as a last resort.
You will not be charged interest for the first year after your purchase.
Your bank will charge you a small fee every time you use them.
They can make economic sense if you carry little or no balance.
They can make economic sense if you carry little or no balance.
The option that is true about credit cards is: They can make economic sense if you carry little or no balance.
To determine which statement is true about credit cards, let's analyze each option:
1. "You may occasionally have to use them, but only as a last resort." - The use of credit cards should not be limited to last resort situations. They can be useful for everyday transactions, convenience, and building credit history. This statement is not true in general.
2. "You will not be charged interest for the first year after your purchase." - This statement is not universally true. Credit cards often offer promotional interest rates for a certain period, but it depends on the terms and conditions of the specific credit card. Some cards may have introductory 0% interest rates for the first year, while others may charge interest from the very beginning.
3. "Your bank will charge you a small fee every time you use them." - Most credit cards do not charge fees for every use. However, it's essential to read and understand the terms of the credit card agreement as some cards may have certain fees associated with specific transactions or circumstances. Generally, regular usage of a credit card does not result in fees.
4. "They can make economic sense if you carry little or no balance." - This statement is generally true. If you pay off your credit card balance in full each month, you can avoid paying interest on your purchases. This can be financially beneficial as you can take advantage of rewards programs and other benefits without incurring debt.
In conclusion, the statement "They can make economic sense if you carry little or no balance" is true about credit cards. However, it's important to consider individual credit card terms and conditions to make an informed decision.