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Which type of card is most likely to require that its balance be paid in full at the end of each billing cycle?

a. bank card
b. retail store card
c. gas card
d. travel and entertainment card

User Djibe
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1 Answer

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Final answer:

The travel and entertainment card, option d, is the card type that typically requires full balance payment each billing cycle, different from credit cards which allow revolving credit.

Step-by-step explanation:

The type of card that is most likely to require that its balance be paid in full at the end of each billing cycle is d. travel and entertainment card. Unlike bank cards or retail store cards, which typically allow for revolving credit and monthly minimum payments, travel and entertainment cards such as those from American Express or Diners Club often require full payment of the balance each month. These cards also tend to offer rewards and benefits like air miles, but may have stricter credit requirements and do not function as borrowing tools in the same way that conventional credit cards do. Debit cards, on the other hand, are directly tied to a user's bank account, allowing immediate access to funds without borrowing money. They are not considered credit and therefore do not have a balance that needs to be paid later. Instead, debit cards like those issued by Visa or Mastercard enable the bank to transfer money from the user's account to the seller at the point of sale.

User Kwikness
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