_____ is a benefit of borrowing.
A) The ability to buy expensive goods while spreading the payments over time
B) Providing payments that fit into a budget
C) Meeting a financial emergency
D) Being able to purchase goods and services when checks are not acceptable
E) All of these are benefits
To establish creditworthiness you probably should first:
A) open savings and checking accounts.
B) use credit extensively.
C) arrange a small loan.
D) pay cash for all purchases.
E) arrange a large loan from close relatives.
Which of the following would be an indication of overspending?
A) Your checks are bouncing.
B) Collection agencies are calling you frequently.
C) All your credit cards are charged up to their limits.
D) You have no cash reserves and must borrow for incidentals.
E) All of the above
All of the following are useful ways to build a strong credit rating except:
A) open checking and savings accounts.
B) open and use a charge account.
C) apply for a long-term loan and occasionally be late with a payment.
D) make payments ahead of scheduled time.
E) discuss with the lender if you foresee difficulty in making a payment.