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
Chapter7: Credit Cards And Consumer Loans
Section: Chapter Questions
Problem 3LTAI
Related questions
Question
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning