Asked by Constance Pettway on Jun 17, 2024
Verified
Yoshi carries a balance on her credit card each month.In May,she decides she wants to use her card to buy a new dishwasher.In which part of the billing cycle should she make her purchase to keep her finance charges to the minimum?
Finance Charges
The cost of borrowing money on credit, including interest and other fees.
Billing Cycle
A predetermined amount of time set by the credit card company that is used for calculating a credit card bill.
Credit Card
A type of credit card account that has a revolving charge where the entire bill does not have to be paid in full each month.
- Understand the concept of credit card finance charges and how to minimize them.
Verified Answer
CT
Carla TolbertJun 18, 2024
Final Answer :
She should make the purchase later in the billing cycle to keep her average daily balance lower,thus lowering her finance charges.
Learning Objectives
- Understand the concept of credit card finance charges and how to minimize them.