International Baccalaureate (IB) Practice Exam

Is it acceptable to use a credit card as long as it is paid off every month?

1. True.

2. False.

The correct answer is: False.

Using a credit card responsibly involves understanding how credit works and the implications of carrying a balance. Paying off the card every month, before interest accrues, is considered a financially savvy practice that helps build a positive credit history. This strategy allows you to earn rewards, manage cash flow, and avoid debt. In this context, saying that it is unacceptable to use a credit card as long as it is paid off every month does not align with the principles of responsible credit use. Many financial experts advocate for the usage of credit cards under these conditions because it can aid in building credit while providing various benefits. As a general rule, the key factor is not the use of a credit card itself but how it is managed and utilized. Therefore, using a credit card while ensuring that the balance is paid off in full each month would typically be considered acceptable and responsible behavior.