Understanding Credit Answers

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1
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Martin used his credit card to buy a new bike. Which statement is true?

A
Martin borrowed money to buy the bike.
B
Martin paid cash at the store.
C
Martin used money from his checking account.
D
Martin saved money over time.
6

Which are considered good credit practices? Check all that apply.

A
Pay less than the minimum amount due.
B
Make payments on or before the due date.
C
Pay off the full amount with the first monthly statement.
D
Have a plan of how you will repay the money.
E
Choose the credit card with the highest interest rate.
7

Which should Mark do to increase his credit score?

A
Pay off his personal loan for his entertainment system.
B
Skip a car payment.
C
Apply for as many credit cards as he can.
D
Make lower monthly payments on his current credit card bill.
8

Which would decrease your credit score? Check all that apply.

A
a decrease in income
B
an increase in debt amount
C
a missed payment
D
a late payment
E
a long credit history
12

Question text not available

Answers:
Selection 1:increase
Selection 2:decrease
Selection 3:decrease
Selection 4:no effect
Selection 5:decrease
13

Martin used his credit card to buy a new bike. Which statement is true?

A
Martin borrowed money to buy the bike.
B
Martin paid cash at the store.
C
Martin used money from his checking account.
D
Martin saved money over time.
14

Which are considered good credit practices? Check all that apply.

A
Pay less than the minimum amount due.
B
Make payments on or before the due date.
C
Pay off the full amount with the first monthly statement.
D
Have a plan of how you will repay the money.
E
Choose the credit card with the highest interest rate.
15

Which should Mark do to increase his credit score?

A
Pay off his personal loan for his entertainment system.
B
Skip a car payment.
C
Apply for as many credit cards as he can.
D
Make lower monthly payments on his current credit card bill.
16

Which would decrease your credit score? Check all that apply.

A
a decrease in income
B
an increase in debt amount
C
a missed payment
D
a late payment
E
a long credit history
17

Check all that you included in your response.

A
Yes, a score of 750 is a good credit score, so Ahmed should qualify for a car loan.
B
Lenders use credit scores to determine how likely one is to pay back a loan.
C
Credit scores range from 300 to 850 and show how good one’s credit is.
19

You make more than minimum payments before the due dates. ✔ increasedecreaseno effect

Answers:
Selection 1:increase
Selection 2:decrease
Selection 3:decrease
Selection 4:no effect
Selection 5:decrease

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