10
QuizMultiple Choice

The Cost of Credit

Question 10 • Personal Finance - EL3403

Which helps to establish a negative credit history?

Answer
M
Make payments on or before the due date.
N
Never miss a payment.
P
Pay off the full amount with the first monthly statement.
P
Pay less than the minimum amount due.

Explanation

Paying less than the minimum amount due means you have not met the required payment, which can be reported as a missed or insufficient payment and harm your credit history. Making payments on time, never missing a payment, and paying the full balance are responsible habits that help build positive credit history.

AI-written and checked against the verified answer.

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