Question

True or False: If you have a $48 balance on your credit card and stop using your credit card for purchases, you won’t ever have to pay interest again. Explain your answer.

Answer 1

Answer:

False

Explanation:

unpaid balances from before you stopped using the card will continue to accrue interest. If your balances have been paid in full, you won't have to send in any new payments. If your credit card charges an annual fee, not using the card won't get you out of having to pay.

Answer 2

Answer:

False

Explanation:

You can have unpaid balance prior to you stopping transactions. If you don't pay them off immediately, interest will grow each month depending on your unpaid balance.