What is credit?

What is credit?

• An arrangement where goods, services, or money is received in exchange for a promise to repay at a later date.

• A system where goods are exchanged for other goods without using money.

• A method of saving money for future use.

• A type of investment in stocks and bonds.

Why is building and maintaining good credit crucial?

• It helps in getting a job.

• It is essential for financial success.

• It ensures better health.

• It guarantees a higher education.

What is often difficult but possible for those who have had difficulty with credit?

• To avoid paying taxes.

• To get back on track.

• To travel internationally.

• To start a new business.

Which of the following is considered a good use of credit?

• Shopping for luxury items

• Convenience

• Investing in stocks

• Paying off other debts

Using credit for which of the following situations is considered a good use?

• Buying a new car

• Emergencies

• Going on vacation

• Purchasing a home

Which of the following is NOT listed as a good use of credit?

• Convenience

• Emergencies

• Reservations

• Entertainment

Which of the following is a good use of credit?

• Owning expensive items sooner

• Increasing debt

• Avoiding all financial responsibilities

• Ignoring credit scores

What is one of the benefits of using credit for protection?

• Protection against fraud

• Protection against inflation

• Protection against taxes

• Protection against interest rates

Which of the following is NOT listed as a good use of credit?

• Taking advantage of free credit

• To obtain an education

• For protection against fraud

• To avoid paying taxes

Which of the following is a downside of using credit?

• Increases financial flexibility

• Reduces temptation to overspend

• Adds to the cost of goods and services

• Speeds up progress towards financial goals