21
QuizMultiple Choice

Cumulative Exam — Cumulative exam

Question 21 • FL-2102371-Personal Finance and Money Management

Which is a long-term consequence of paying less than the minimum amount due on your bills?

Answer
A
There will be a late fee.
B
You will get a fee for having a negative balance in your checking account.
C
The number of payments will increase.
D
It will be harder to get a good rate on a mortgage when you buy a house.

Explanation

Paying less than the minimum due can cause missed or late payments to be reported to credit bureaus, which may lower your credit score. A lower score can make it harder to qualify for a mortgage or get a good interest rate. A late fee is a possible immediate consequence, not the long-term consequence asked about.

AI-written and checked against the verified answer.

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