Question
All of the following are benefits to paying the full balance on your credit card each month EXCEPT: You won't have to pay interest. You won't have to pay any late fees. Your credit score can increase. Your credit score can decrease.
Answer
4.6
(314 Votes)
Lucas
Professional · Tutor for 6 years
Answer
Your credit score can decrease.
Explanation
The question revolves around understanding the benefits of paying the full balance on a credit card each month. To analyze this, let's examine each statement:1. "You won't have to pay interest": Paying the full balance each month on a credit card typically means you avoid interest charges. Credit card companies usually offer a grace period in which no interest is charged if the full amount is paid off.2. "You won't have to pay any late fees": Paying the full balance on time each month prevents late fees. Late fees are typically charged when the minimum payment is not made by the due date.3. "Your credit score can increase": Regularly paying off the full balance on a credit card can positively impact your credit score. It demonstrates to credit agencies that you are managing your credit responsibly.4. "Your credit score can decrease": Paying the full balance on your credit card each month is not typically associated with a decrease in credit score. In fact, it generally contributes to maintaining or improving your credit score.From this analysis, it's evident that the statement "Your credit score can decrease" is not a benefit of paying the full balance on your credit card each month. It is, in fact, an incorrect statement in this context.