Freya realizes she does not have enough in her bank account to use the debit card. She decides to use a credit card instead.

Which questions should Freya answer before using a credit card? Check all that

apply.

Can I pay at least the minimum payment each month?

Can I make payments on time and avoid late fees?

Will I have to take out a loan?

How much in finance charges can I afford to pay?

Should I talk to a consumer credit counseling service?

A. Can I pay at least the minimum payment each month?

B. Can I make payments on time and avoid late fees?

D. How much in finance charges can I afford to pay?

Explanation:

Credit Cards are payment tools that allow the holders to borrow money when they want to pay for goods and services. Cardholders are expected to pay back these funds monthly. Failure to pay back after the month the money was requested and withdrawn, attracts charges. A grace period of 21 days is usually granted the cardholders before their charges begin to accumulate. Therefore, the cardholders must endeavor to pay off their debts just in time to avoid extra charges.

So Freya who has decided to use a credit card must consider her ability to meet up with the monthly payment and avoid extra charges.