Question

7. True or False: If a person makes a credit card payment earlier in the month versus later in

the month, it will result in a lower average daily balance, lower interest owed, and a smaller
minimum payment at the end of the billing cycle.

Answer 1

Answer: True.

explanation: If a person makes a credit card payment earlier in the month versus later in the month, it will result in a lower average daily balance, lower interest owed, and a smaller minimum payment at the end of the billing cycle. Paying off your balance early or making additional payments before the billing cycle ends decreases your credit utilization.