Chapter 4.1, Problem 3R

To determine

To Discuss: Importance and usefulness of Credit Card.

Explanation of Solution

Below are the various decisions to use credit card:

• Credit card is best convenience to be fully paid within same billing cycle
• To look over credit card purchases regularly
• To keep a close eye on credit card report history
• Not to use credit card at near ATM’S or Casinos

  

Economics Concept Introduction

Introduction:

Credit card allows to borrow money against the line of credit, knows as the credit card limit. In this the bank decides the credit limit based on the credit card history. Credit card offers additional insurance on purchases and can make it easier to request a refund or a return.

Credit card is a measure of a person’s ability to pay back her debt on time, which is described in a credit history compiled by a credit bureau and expressed by a three-digit number called a credit score.