A credit card can provide an interest-free loan if you
A)pay for purchases within six months.
B)pay the minimum payment.
C)pay the entire balance on or before the due date.
D)pay the previous balance by the due date.
E)receive a cash advance.

Question

Quizplus · Accepted Answer

Paying the entire balance on or before the due date will prevent any interest from accruing, essentially providing an interest-free loan. Option A may offer a promotional interest-free period but will incur interest after that time. Option B will also incur interest on any remaining balance. Option D is simply paying off the previous balance, and option E will typically have high interest rates and fees.

A Credit Card Can Provide an Interest-Free Loan If You