Jerome has three major credit cards and makes payments on them each month. He has had one of them for six years, another for three years, and the last for eleven months. Making just the minimum payment has become automatic at this point, and Jerome barely even looks at the statements. Jerome is beginning to think that his approach to credit may be faulty, and he wants fo find out how to adjust it. He just applied for two additional credit cards.
-Based on his credit card usage, which of the following aspects of a credit card should be most important to Jerome?

Question

Quizplus · Accepted Answer

Since Jerome has been making only minimum payments, he is likely accruing interest on his unpaid balances. Therefore, the APR (annual percentage rate) on the unpaid balance is the most important aspect of a credit card for him to consider. A lower APR can save him money in the long run. The annual fee and perks and benefits are less important considerations for someone who is carrying a balance and not paying off their card in full each month.

Jerome Has Three Major Credit Cards and Makes Payments on Them