Question

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

Answer 1

Select:
- A good credit history results in lower interest rates.
- A good credit history makes borrowing easier.

Brief reasons:
- Lenders view good credit as lower risk, so they’re more likely to approve loans and offer lower interest rates.
- The other statements are incorrect: good credit does not portray irresponsibility, does not lead to higher rates, and would not cause rental denial (poor credit might).