question 10 / 10\nwhat is the problem with paying only your minimum credit card balance each month?\na. it…

question 10 / 10\nwhat is the problem with paying only your minimum credit card balance each month?\na. it lowers your credit score\nb. you have to pay interest\nc. the bank will cancel your credit card\nd. all of the above

question 10 / 10\nwhat is the problem with paying only your minimum credit card balance each month?\na. it lowers your credit score\nb. you have to pay interest\nc. the bank will cancel your credit card\nd. all of the above

Answer

Brief Explanations:

Paying only the minimum credit card balance each month means you are not paying off the full amount owed. Credit card companies charge interest on the remaining balance. While paying the minimum is better than not paying at all, it does not lower your credit score (as long as you pay at least the minimum on time) and the bank is unlikely to cancel your card just for paying the minimum. However, you still have to pay interest on the outstanding balance.

Answer:

B. You have to pay interest