Final answer:
A customer can pay the full statement balance to reduce their credit card balance to zero and keep their line of credit open. It's vital to pay this amount by the due date to avoid interest charges and maintain the ability to use the credit card for future purchases.
Step-by-step explanation:
The type of payment a customer can make that will bring their balance down to zero but will keep their line of credit open for future use is known as paying the full statement balance. When you use a credit card, you are essentially taking out a short-term loan. It is critical to pay off this credit as soon as possible to avoid accruing interest. Every month you carry a balance, you are charged interest, which is a percentage of the amount owed. If you make only the minimum payment, which includes a principal portion and an interest portion, you will reduce your outstanding balance, but not down to zero.
If you want to continue using your credit card without incurring additional interest charges, you must pay the full statement balance by the due date each month. This will reset your balance to zero while allowing you to continue using your line of credit without interruption. This is important as any balance carried beyond the payment due date will accrue interest, which can add up over time. Additional fees may apply for late payments or if the account goes into overdraft. Some credit card companies might also adjust their interest rates or fees to attract more customers and reach equilibrium in the market.