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Maranda Sellars pays off the balance on her credit card every month. What type of credit card user is she known as?

a) Revolver
b) Transactor
c) Defaulter
d) Bankrupt

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User Jbakirov
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1 Answer

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Final answer:

Maranda Sellars, who pays off her credit card balance every month, is known as a transactor. This is a wise financial practice that helps avoid interest charges, as a credit card is essentially a short-term loan.

Step-by-step explanation:

Maranda Sellars, who pays off the balance on her credit card every month, is known as a transactor. A transactor is a type of credit card user who avoids accruing interest on their purchases by paying off the full balance of their credit card each statement period. Since a credit card operates essentially as a short-term loan, with the money being transferred from the credit card company's checking account to the seller, users like Maranda are employing a financially savvy method by not carrying a balance over into the next month, thereby avoiding additional charges that come from interest.

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User Calixto
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