Question

which of these can help you build credit if done responsibly? 5 points a) taking out a small loan and paying it back on time b) never borrowing money at all c) opening 5 new credit cards immediately d) ignoring due dates but paying eventually why might someone get a secured credit card? 5 points a) they already have excellent credit b) they want to avoid all interest c) they have little or no credit history and want to build credit d) they don’t want to pay deposits

Explanation:

• For the first question, taking out a small loan and paying it back on time shows responsible credit - handling and helps build credit. Not borrowing at all gives no opportunity to build credit. Opening multiple new credit cards immediately can be seen as risky and may not help build credit well. Ignoring due - dates negatively impacts credit.
• For the second question, secured credit cards are often used by those with little or no credit history as they require a deposit which acts as collateral, helping them build credit. People with excellent credit don't need secured cards. Avoiding all interest is not the main reason for getting a secured card, and secured cards require a deposit.

Answer:

a) Taking out a small loan and paying it back on time
c) They have little or no credit history and want to build credit