Question
Which are considered good credit practices? Check all that apply. Pay less than the minimum amount due. Make payments on or before the due date. Pay off the full amount with the first monthly statement. Have a plan of how you will repay the money. Choose the credit card with the highest interest rate.
Ask by Reed Wood. in the United States
Jan 30,2025
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Answer
Good credit practices include:
- Making payments on or before the due date.
- Paying off the full amount with the first monthly statement.
- Having a plan to repay the money.
These actions help maintain a good credit score and manage debt effectively.
Solution
Good credit practices include:
1. **Make payments on or before the due date.** - This helps maintain a good credit score and avoids late fees.
2. **Pay off the full amount with the first monthly statement.** - This prevents interest from accruing and shows responsible credit usage.
3. **Have a plan of how you will repay the money.** - Having a repayment plan helps manage debt effectively and ensures timely payments.
The following are not considered good credit practices:
- **Pay less than the minimum amount due.** - This can lead to late fees and negatively impact your credit score.
- **Choose the credit card with the highest interest rate.** - This can lead to higher costs over time and is not a wise financial decision.
In summary, the good credit practices from your list are:
- Make payments on or before the due date.
- Pay off the full amount with the first monthly statement.
- Have a plan of how you will repay the money.
Reviewed and approved by the UpStudy tutoring team
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Bonus Knowledge
Making payments on or before the due date is a great practice that shows lenders you are responsible and can help improve your credit score. Seriously, it’s like arriving to a party early – it often leaves a good impression! Having a plan for repaying your debt can prevent you from getting into a financial pickle later. It’s like crafting a roadmap before embarking on a road trip—you want to know your stops and avoid getting lost in the weeds of debt!