Question

Credit cards can help

time regularly.
when paid off on
Build credit history
act as a form of identification
lower your debt
balance your checking account

Answer 1

Credit cards can help build credit history and manage finances, but they should be paid off monthly to avoid interest. Balancing a checkbook regularly helps track expenses and avoid fees.

Step-by-step explanation:

Credit cards can serve multiple purposes when used wisely and responsibly. One of their main benefits is the ability to build credit history by borrowing money and repaying it within a set time frame. Timely payments show lenders that you are a reliable borrower, which can be beneficial when making larger purchases such as an automobile. It's important to pay off your credit card balance each month to avoid the accumulation of interest, which is the cost of borrowing money. Simply carrying more credit or debit cards will not increase the amount of money in the economy, similar to how printing more checks doesn't increase the balance in your checking account. Managing your finances effectively includes balancing your checkbook to prevent overdraft fees and to track your expenses.

Answer 2

Build credit history

Step-by-step explanation:

Credit cards can built good credit history when paid off regularly. This is why if you have credit card debt, you should try to make your monthly payments as regularly as possible, ideally in the due date or before.

This will build a good credit history that will act in your favor when asking for other type of credit like mortgages, because banks will see that you are a good customer, and will trust you.