Question

Rick has three credit cards he uses for gas, entertainment, and groceries. All card balances are close to the limit, and he forgot to make a monthly payment on one card two months ago. What could be a future consequence of this behavior?

a
A higher interest rate

b
Garnishment of benefits

c
A better credit score

d
Loss of all credit

Answer 1

Answer:

a. A higher interest rate

Answer 2

The future consequence of this behavior would be as A higher interest rate Option(a) is correct.

What is a Credit Card?

A Credit card is an installment card gave to clients (cardholders) to empower the cardholder to pay a trader for labor and products in light of the cardholder's gathered obligation i.e., vow to the card backer to pay them for the sums in addition to the next concurred charges.

A Standard credit card is unique in relation to a charge card, which requires the equilibrium to be reimbursed in full every month or toward the finish of every assertion cycle. Conversely, credit cards permit the shoppers to fabricate a proceeding with equilibrium of obligation, likely to intrigue being charged.

A Credit card contrasts from a charge card likewise in that a credit card ordinarily includes an outsider substance that pays the merchant and is repaid by the purchaser, while a charge card just concedes installment by the purchaser until a later date.

Therefore Option(a) is correct.

Learn more about Credit Card here:

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