Georgia DECA Advertising Practice Test

The correct answer regarding costs associated with credit is the annual fees. Annual fees are charges that credit card issuers may assess for holding the card, and they are a common cost that consumers should factor into their credit use decisions.

These fees are typically charged once a year and can vary widely depending on the card's benefits and rewards structure. Some credit cards, particularly those that offer generous rewards or significant perks, may come with higher annual fees. Understanding this cost is crucial for consumers, as it can impact the overall value they receive from using a credit card.

In contrast, late payment penalties, loan processing charges, and transaction fees also represent costs associated with credit usage but differ in context. Late payment penalties occur when a payment is not made on time and can significantly increase the cost of credit over time. Loan processing charges refer to fees incurred when applying for a loan, which may not be considered a regular cost tied directly to credit access itself. Transaction fees are often associated with foreign transactions or cash advances, varying by the type of transaction rather than being a standard cost like the annual fee.