5
QuizMultiple Choice

The Cost of Credit

Question 5 • Personal Finance - EL3403

Before applying for a credit card, Jacob examines his credit report. Which explains why Jacob might examine his credit report?

Answer
t
to determine which company has the best credit card features
t
to determine if he has a history of good credit
t
to determine if he needs a credit card
t
to determine his credit limit

Explanation

A credit report shows a person’s history of borrowing and repaying debt, so Jacob can check whether he has a record of good credit. Comparing card features is done by reviewing card offers, and a credit report does not decide whether he needs a card or set his credit limit.

AI-written and checked against the verified answer.

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