Select the most likely outcome of making only on-time minimum payments to a credit card with a balance for an entire year?

Question

Computers & Technology

Adonis Ellison

3 March, 06:20

Select the most likely outcome of making only on-time minimum payments to a credit card with a balance for an entire year?

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Answers (2)

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Joe Stanley · Answer 1

Making only on-time minimum payments to a credit card with a balance for an entire year can lead to:

- bigger interest charges

- longer time to pay out your depth

It means you are committing to paying more in interest charges later.

Genevieve Cummings · Answer 2

Making one time minimum payments to credit card with a balance for entire year can lead to bigger interest charges longer time to pay out your depth it means you are committing to paying more in interest charges later.

This is because credit card issuers tend to set minimum payment requirements at rock bottom levels. you generally owe either a fixed amount or a percentage of the balance whichever greater. Your credit card could also take a hit. when your credit card balances climb, so does your credit utilization ratio the percentage of your credit of your credit you are using. And because your credit utilization ratio is a major factor in your credit score high balances can badly damage your credit card.