3
QuizMultiple Choice

Comparing Purchasing Options — Quiz

Question 3 • Financial Algebra/Mathematics

How does buying an item on credit compare to paying cash in terms of credit history?

Answer
A
improves credit history by demonstrating credit use and timely payments
B
decreases credit worthiness due to potential high balances
C
has no impact on credit history
D
requires higher upfront payments to maintain credit scores

Explanation

Buying an item on credit can help build credit history when you make payments on time. This demonstrates that you can responsibly use and repay credit, unlike paying cash, which does not create a record of credit use. The correct choice is “improves credit history by demonstrating credit use and timely payments.”

AI-written and checked against the verified answer.

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