QUESTION IMAGE
Question
a way to build good credit is
using only secured loans.
taking out many lines of credit.
paying bills when they are due.
using only credit cards.
Brief Explanations
- Option "using only secured loans": Relying solely on secured loans is not a comprehensive or recommended way to build good credit as it limits credit diversity and doesn't fully demonstrate responsible credit behavior across different types of credit.
- Option "taking out many lines of credit": Taking out too many lines of credit at once can be seen as a risky behavior by lenders and may negatively impact credit scores, especially if not managed properly.
- Option "paying bills when they are due": Timely bill payment is a key factor in building good credit. Payment history is a major component of credit scores, and consistently paying bills on time shows financial responsibility and reliability to creditors.
- Option "using only credit cards": Limiting credit usage to only credit cards lacks diversity in credit types (e.g., installment loans, mortgages could also be part of a healthy credit mix) and isn't the best way to build good credit.
Snap & solve any problem in the app
Get step-by-step solutions on Sovi AI
Photo-based solutions with guided steps
Explore more problems and detailed explanations
C. paying bills when they are due (assuming the options are labeled A, B, C, D with A: using only secured loans, B: taking out many lines of credit, C: paying bills when they are due, D: using only credit cards)