Which term is the amount you must pay to avoid late fees?

• A. Grace Period
• B. Minimum Monthly Payment
• C. Credit Card Debt
• D. Cash Advance

Answer: (B)

Understanding how late fees are avoided on a credit card starts with the minimum monthly payment. This is the smallest amount you must pay by the due date to keep your account current and avoid a late payment being reported. Paying at least this amount by the due date prevents late fees, though it won’t eliminate interest on any remaining balance. The grace period is a separate idea: it’s the window after your billing cycle during which you can pay in full to avoid interest on new purchases, not a rule about whether you’ll be charged a late fee. Cash advance is a different kind of transaction with its own fees and interest structure, and credit card debt refers to the total amount you owe, not the amount required to avoid late fees.