Ann Marie accumulated a large balance on her credit card while in college.She is trying to pay it off as quickly as possible and wants to roll the balance onto a new credit card.She now uses a credit card only for emergencies.What should Ann Marie look for in a credit card given the large balance and the way she plans to use the card?

Question

Quizplus · Accepted Answer

Since Ann Marie is trying to pay off her balance as quickly as possible, she would benefit from a credit card with a low annual percentage rate (APR). This way, less interest will be charged on the balance, making it easier for her to pay off the debt. A low annual fee is also a good feature to look for in a card, but it is not as important as the APR in this case. A long grace period may not be necessary since Ann Marie only plans to use the card for emergencies. The balance calculation methods (average daily balance, two-cycle average daily balance) may affect how interest is calculated, but a low APR is still the most important feature to consider.

Ann Marie Accumulated a Large Balance on Her Credit Card