15
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Understanding Credit

Question 15 • Personal Finance - EL3403

Dahlia is explaining to her sister why a positive credit history is important. Which of the following should Dahlia give as reasons for a positive credit history? Check all that apply.

Answer
A
A good credit history portrays irresponsibility.
B
A good credit history results in lower interest rates.
C
A good credit history makes borrowing easier.
D
A good credit history results in higher interest rates.
E
A good credit history may result in denial of a rental application.

Explanation

A positive credit history shows lenders that a person has managed credit responsibly. This can make borrowing easier and help the person qualify for lower interest rates. It does not portray irresponsibility, lead to higher interest rates, or typically cause a rental application to be denied.

AI-written and checked against the verified answer.

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