Question

Which are considered good credit practices? Check all that apply.
Pay less than the minimum amount due.
Make payments on or before the due date.
Pay off the full amount with the first monthly statement.
Have a plan of how you will repay the money.
Choose the credit card with the highest interest rate.

Answer 1

Good credit practices (check all that apply):

- Make payments on or before the due date. — On-time payments protect your credit score and avoid late fees.
- Pay off the full amount with the first monthly statement. — Paying the full balance each cycle avoids interest charges and builds strong credit habits.
- Have a plan of how you will repay the money. — Budgeting and a repayment plan help you avoid missed payments and excessive debt.

Not good practices:
- Pay less than the minimum amount due. — This produces late fees, higher interest, and damage to your credit.
- Choose the credit card with the highest interest rate. — You generally want a card with a competitive (lower) interest rate and terms that match your needs.