Question

question 4 of 10
which scenario demonstrates a wise use of credit cards?
a. brianna pays off the minimum on her credit card. she leaves the
large balance for when she will make more money.
b. stephanie gets as many credit cards as she can. she spreads her
expenses among the cards and makes the minimum payment on
each.
c. spencer chooses a credit card with a low interest rate and low
credit limit. he pays off the total charges each month.
d. avery applies for the first credit card offer he receives in the mail.
he saves time because all creditors offer the same terms.

Explanation:

• Option A: Paying only the minimum and leaving a large balance incurs high - interest charges over time.
• Option B: Having multiple cards and only making minimum payments can lead to debt accumulation.
• Option C: Choosing a card with low interest and low credit limit (to avoid over - spending) and paying off the total each month (avoids interest) is a wise use.
• Option D: Not all creditors offer the same terms, so applying for the first card received without comparison is unwise.

Answer:

C. Spencer chooses a credit card with a low interest rate and low credit limit. He pays off the total charges each month.