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Do you have to pay back the entire balance every month or can you choose how much you pay? |
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Answer
The answer depends upon what type of account you have. There are different types of accounts which have a card.
The typical credit card is issued on a revolving account. This type of account allows the consumer to pay a minimum balance (set by the credit card company) and REVOLVE the remainder over to the next month. This is a costly proposition for the consumer, incurring the most interest charges.
A charge card (as opposed to a credit card) may be issued on an open account. This type of credit grantor, the most well-known of which is American Express, issues an account which has no credit limit, but must be paid in full every month. There are no credit terms on such an account, and there is no way to revolve the balance over. Some department stores also issue cards on this type of account.
It is important to know which type of account you have and to pay according to the terms of your specific card holder agreement.
First answer by The Credit Lady. Last edit by The Credit Lady. Question popularity: 29 [recommend question]
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