To establish credit, you should first:
A) open checking and savings accounts .
B) use credit extensively.
C) obtain a small loan.
D) pay cash for all purchases.
E) obtain a large loan from close relatives.

Question

Quizplus · Accepted Answer

The first step to establishing credit is opening checking and savings accounts. This shows lenders that you are financially responsible and can manage your money. Using credit extensively or obtaining a small loan may result in high interest rates and debt if not managed properly. Paying cash for all purchases does not establish credit, as there is no record of payments made. Obtaining a large loan from close relatives may not be feasible for everyone and may not be viewed as credible by lenders.

To Establish Credit, You Should First