shopping for a credit card
Unsecured Credit Cards
There are many types of credit cards to choose from. "Unsecured" credit cards require no collateral or down payment and allow you to make purchases up to your credit limit. Which of these features also apply?
If you don't pay your balance in full each month, a finance charge is added to any outstanding balance.
The minimum monthly payment is usually 10% of the balance.
If you pay the minimum monthly payment, no finance charge is made.
"A" is the correct answer. The minimum monthly payment is usually 3-5% of the balance. This may not sound like much, but if you only make the minimum monthly payment, your balance will greatly increase over time. Avoid paying finance charges by paying the full balance each month.