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vodomira [7]
3 years ago
11

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

Advanced Placement (AP)
1 answer:
defon3 years ago
5 0

If you pay the minimum toward your balance each month, here’s what you can expect to happen:

<span>Paying down your debt will take much longer.You’ll rack up bigger interest charges.<span>Your credit score could take a hit. 

</span></span>Credit card issuers tend to set minimum payment requirements at rock-bottom levels. You’ll generally owe either a fixed amount — often $25 — or a percentage of the balance, whichever’s greater. Some cards require you to pay only 1% or 2% of the balance each month, plus any fees and accrued interest. Making these small payments on time will let you avoid late fees<span>, but you won’t make any real progress on paying down your balance.</span>
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