Janey makes frequent small purchases and pays off the total outstanding balance on her credit card every month. Which features are the most attractive to her when searching for a credit card provider?

Question

Business

Clay Henry

5 June, 23:35

Janey makes frequent small purchases and pays off the total outstanding balance on her credit card every month. Which features are the most attractive to her when searching for a credit card provider?

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Answers (1)

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Abbie · Answer 1

Long grace period

Explanation:

Grace period refers to the time period allowed by a credit card company to the holder, to repay the outstanding amount, without having to pay any interest.

Usually a grace period of 21 days exists for majority of credit card issuer companies. The period begins from the end of a bill cycle till the next payment due date.

The grace period length depends upon the credit worthiness of the card holder i. e how frequently and punctually the holder pays off the outstanding bills.

In the given case, Janey makes small amount purchases and pays off the total outstanding amount monthly i. e regularly. Thus, the feature most important to her would be, a longer grace period so that she can regularly pay off her outstanding amount, without incurring any finance charges in the form of interest.