Question

1. if someone uses a credit card only once, then only ever pays the minimum payment, what will happen (compared to paying more than the minimum)?

they will never pay off the credit card; only the interest will ever be paid.
the interest they owe will rise each billing cycle, raising the monthly minimum.
they will pay it off eventually, but have higher interest payments.
their credit score will slowly drop, hurting their final credit limit.

Explanation:

When only making minimum credit card payments on a one-time charge, the principal balance will eventually be paid down over time, but the majority of early minimum payments go toward interest. This results in far more total interest paid compared to paying more than the minimum each month. The first option is incorrect because the balance will be paid off eventually (minimum payments do cover a small portion of principal). The second option is wrong because as the principal decreases, interest owed each cycle falls, so the minimum payment will decrease over time. The fourth option is not a guaranteed outcome; consistent minimum payments do not inherently cause a credit score drop.

Answer:

They will pay it off eventually, but have higher interest payments.