All credit cards are not alike, nor are all spenders alike. When you are deciding which credit card to obtain, your first step should be to honestly determine what kind of spender you are and how you pay your bills. Then consider cards whose features best match your purchasing and payment habits. These cards will work to your greatest advantage. Consider the following example: Shop Around for the Best Deal Larry is shopping around for a credit card and does not expect to pay the balance in full each month. Larry isn't a big spender and will carry small balances from month to month. What is Larry's best option? O Pay an annual fee to keep the interest rate as low as possible Select the card with the longest grace period regardless of its annual fee or interest rate Avoid cards with annual fees, and get one with as low an interest rate as possible
All credit cards are not alike, nor are all spenders alike. When you are deciding which credit card to obtain, your first step should be to honestly determine what kind of spender you are and how you pay your bills. Then consider cards whose features best match your purchasing and payment habits. These cards will work to your greatest advantage. Consider the following example: Shop Around for the Best Deal Larry is shopping around for a credit card and does not expect to pay the balance in full each month. Larry isn't a big spender and will carry small balances from month to month. What is Larry's best option? O Pay an annual fee to keep the interest rate as low as possible Select the card with the longest grace period regardless of its annual fee or interest rate Avoid cards with annual fees, and get one with as low an interest rate as possible
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Transcribed Image Text:All credit cards are not alike, nor are all spenders alike. When you are deciding which credit card to
obtain, your first step should be to honestly determine what kind of spender you are and how you
pay your bills. Then consider cards whose features best match your purchasing and payment
habits. These cards will work to your greatest advantage.
Consider the following example:
Shop Around for the Best Deal
Larry is shopping around for a credit card and does not expect to pay the balance in full
each month. Larry isn't a big spender and will carry small balances from month to month.
What is Larry's best option?
O
Pay an annual fee to keep the interest rate as low as possible
Select the card with the longest grace period regardless of its annual fee or interest rate
Avoid cards with annual fees, and get one with as low an interest rate as possible
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