Question

if you pay only the minimum payment on your credit card each month, what will happen? 5 points a) you avoid interest completely b) you may stay in debt longer and pay more interest c) your credit score automatically goes up faster d) your card limit increases immediately which strategy is the best for keeping a healthy credit history? 5 points a) make late payments occasionally b) keep old accounts open, even if unused c) close all credit accounts after paying them off d) apply for new credit cards frequently

Explanation:

1. For the first question, paying only the minimum on a credit - card means less of the principal is paid off, resulting in longer debt and more interest over time. It doesn't avoid interest, raise the credit score faster, or increase the card limit immediately.
2. For the second question, making late payments is bad for credit history. Closing all accounts after paying them off can shorten credit history length and applying for new cards frequently can lower the average age of accounts and increase credit inquiries. Keeping old accounts open helps maintain a long credit history which is beneficial for credit scores.

Answer:

1. B. You may stay in debt longer and pay more interest
2. B. Keep old accounts open, even if unused