3
AssignmentMultiple Choice

Bankruptcy

Question 3 • TX-Personal Financial Literacy and Economics

Which explains the importance of reestablishing a good credit history?

Answer
A
A positive credit history can result in higher interest rates.
B
A positive credit history might limit new employment opportunities.
C
A positive credit history can be a factor in being denied the approval for a credit card.
D
A positive credit history may increase a person’s ability to purchase a vehicle or a home.

Explanation

A good credit history shows lenders that a person has managed credit responsibly. This can make it easier to qualify for loans and financing needed to purchase a vehicle or a home. The other choices describe possible disadvantages, but a positive credit history generally does not cause those outcomes.

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