Identify one way that individuals can maintain good credit.
A. Charge large purchases on several different credit cards and pay them off in a few years.
B. Charge purchases on credit cards and pay them off completely each month.
C. Pay for everything in cash or ask people for IOUs instead of opening credit cards.

Question

Identify one way that individuals can maintain good credit.
	A.	Charge large purchases on several different credit cards and pay them off in a few years. 
	B.	Charge purchases on credit cards and pay them off completely each month.
	C.	Pay for everything in cash or ask people for IOUs instead of opening credit cards.

pooja195 · Answer

Any ideas?

ah42632 · Answer

This one I am still reading, I am trying to understand it still but I posted it anyways

ah42632 · Answer

I feel like maybe C is correct but the other ones don´t seem bad either

pooja195 · Answer

Actually, C is incorrect because to make a large purchase you will maybe need a loan and to get a loan you need a credit to make your purchase. So it is extremely important to have a credit card.

ah42632 · Answer

Ohhhh, makes sense

ah42632 · Answer

A?

pooja195 · Answer

Consider this:  if i make multiple purchases on multiple credit cards, I will be charged an interest that will be charged on my exisiting balance and it will only contribute to my debt.

pooja195 · Answer

So what do you think the correct answer would be based on the info above?

ah42632 · Answer

There is an option D that says ¨File for bankruptcy every time money is owed¨

pooja195 · Answer

Would you say that is correct?

ah42632 · Answer

Yes because if you owe money and you can´t pay if back then its considered bankruptcy

pooja195 · Answer

So we are saying if I purchase a tv on a credit card, instead of making a payment I should file bankruptcy?

ah42632 · Answer

No?

pooja195 · Answer

Now consider this: If I am new to building my credit and my credit limit is $500, I can't make a large purchase because it is reccomended to only use 30% of the $500. What would be the best wat to handle my expenses without incurring more debt?

pooja195 · Answer

$\color{#0cbb34}{\text{Originally Posted by}}$ @ah42632
No?
$\color{#0cbb34}{\text{End of Quote}}$
Credit cards are meant to say, I don't have money right now but I will pay it back its a mini loan sort to speak

pooja195 · Answer

So we have gone over A,C,D

ah42632 · Answer

So, then B is the answer. Process of elimination it is XD.

pooja195 · Answer

:-) also read the explantion so you better understand

ah42632 · Answer

I will thank you so much. Also ummm... how old are you? You dont have to answer if you dont want to

pooja195 · Answer

I am a college student majoring in Finance :-) I think that should suffice.

ah42632 · Answer

Yeah, I think your going to be my tutor for this semester, XD