Question

7.
Mikayla wants to establish good credit. Which of the following is a wise way to do that?

A.
Use a credit card to purchase items that she can afford to pay back before interest is added to her payments

B.
Use a credit card to purchase items even if that means she can't pay them back before interest is added to her payments

C.
Ask for a low credit card limit so she is not tempted to spend beyond her means

D.
Charge the maximum amount of her credit card limit to show future lenders that she is not afraid to take on large amounts of debt

Answer 1

A.

Using a credit card for purchases she can afford and paying the balance before interest accrues builds a positive payment history, avoids interest charges, and helps keep credit utilization low — all of which improve credit. The other choices encourage unnecessary debt or poor credit management.