Question

Ralph is purchasing a new gaming system for $300.00. He is trying to decide whether he wants to use cash or his credit card to pay. He has $600.00 available in his checking account.

Which of the following is not an argument that justifies Ralph's use of his cash to purchase the gaming system?
a.
Using cash can help Ralph improve his credit score.
b.
Using cash may limit overspending or impulse buying.
c.
Cash doesn't come with any potential "over limit" or "late payment" fees.
d.
Cash will be the easiest method of payment with very few security measures involved.

Answer 1

a.

Using cash does not help build or improve a credit score—credit scores are affected by credit accounts and how they are used (on‑time payments, credit utilization, etc.). The other choices are valid arguments for using cash.