Question

What is the amount of money you still owe to their credit card company called? A. credit card interest B. credit card balance C. credit card limit D. credit card fee

Answer 1

The correct option is (B).  

Credit card balance is the amount of money you still owe to their credit card company.

Further Explanation:

Credit card:

A credit card is a plastic card which is issued by the financial institutions or the banks. A credit card is used for purchasing goods and services. The owner of the card has to pay the borrowed amount with interest after a specific period, which is mentioned at the time of issuing the credit card. The credit card has a specific limit, which is known as the line of credit (LOC). The owner of the card can use the amount up to the line of credit.

Justification for the correct and incorrect answer:

A.

Credit card interest: This option is incorrect.

Credit card interest is also known as the annual interest rate, which includes the cost and the expenses in order to get a loan.

B.

Credit card balance: This option is correct.

It is a sum of money which is due to the credit card company and has to be paid in future the amount of money spent to the credit card issuer with interest. The spent amount which is due to pay is known as the credit card balance.

C.

Credit card limit: This option is incorrect.

The credit card limit is the line of credit (LOC) or the specified amount up to which the cardholder can use the amount.

D.

Credit card fee: This option is incorrect.

A credit card fee is also known as the participation fee or the membership fee for owning the credit card, which is charged by the issuer of the credit card or the credit card companies.

Learn more:

1. Credit card  

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2. Credit utilization value

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3. Low credit score  

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Answer details:

Grade: High School

Subject: Business studies

Chapter: Banking

Keywords: What is the amount of money you still owe to their credit card company called, credit card interest, credit card balance, credit card limit, credit card fee.

Answer 2

The amount of money that you still owe to the Credit card Company is called Credit card balance.

Credit card balance refers to the amount of money one has spent on their card and they haven’t paid back to the Credit card Company.

Further Explanation

• A credit card is a card in which any payment made by the card holder using the card, then it means they have borrowed money from the Card Company to pay at a later date.
• In other words, unlike debit cards, credit cards allows customers to borrow money from the Credit Company or the card issuer for the purposes of making purchases up to a certain limit.

Credit card balance

• Credit card balance is the money that has been spent by the card holder and have not been paid back to the card issuer. For instance, if an individual spends $ 550 to make purchases of items, and they have not paid back, then the credit card balance will be $550.

Terms Associated with Credit Cards

Credit card limit  

• Credit card limit refers to the maximum amount of money that the card holder is allowed to borrow on the card. The can holder, cannot make purchases exceeding the Credit card limit.
• If the Card limit is exceeded then the Card issuer charges an over-limit fee depending on the agreement between the card holder and the card issuer.  

Credit card fee

• Credit card fee is the annual fee that the card issuer or the card Company charges the card holder for the privilege of using the credit card. This fee may be also called participation fee or the membership fee.  

Credit card interest  

• Credit card interest may be referred to as the Annual percentage rate, which is the annual rate of interest that includes the fees and the costs incurred to get a loan.  

Keywords: Credit card, Credit Card Company, Credit card limit, credit card holder.

Learn also about:

1. Debit card and its advantage: brainly.com/question/1006222
2. Difference between Credit card and debit card: brainly.com/question/10163886

Level: High school

Subject: Business

Topic: Trade  

Sub-topic: Modes of payment