Final answer:
Paying more than the minimum payment on credit cards leads to paying less interest over time and can improve credit scores, making future borrowing more favorable. The correct option is C. see their credit scores decrease.
Step-by-step explanation:
Consumers who pay more than the minimum payment on credit cards pay less interest in the long run. Credit card companies require a minimum payment each month, but this covers mostly the interest and only a small portion goes towards reducing the principal amount owed.
When you pay more than the minimum, you reduce the principal faster, reducing the amount of interest accrued over time. This is because the interest charged on a credit card is calculated by multiplying the remaining balance by the interest rate. Paying off your credit card debt more quickly can lead to substantial savings on interest.
Moreover, carrying a lower balance can also be beneficial to your credit score, contrary to concern C. It demonstrates financial responsibility and good management of credit, which can improve your credit score over time.
While the initial question asked does not directly relate to qualifying for mortgages, a higher credit score can indeed make it easier to secure a mortgage with favorable terms. The correct option is C. see their credit scores decrease.