Question

It is important to reduce your debt in order to (afford/ increase /improve) your credit?

Paying down a debt as quickly as possible can help (distribute/ eliminate/ reduce) interest owned?



Checking your credit report can help you (decrease interest payments/ monitor your information/ reduce your debt)?

Answer 1

1. Improve

2. Reduce

3. Monitor your information

Step-by-step explanation:

1. When you have a lot of debt to your name, it reduces your credit and presents you as a risky individual who will be unable to take on more debt because they haven't finished paying off the others that they have. You will be more of a credit risk and this will reduce you're credit.

2. Interest is charged on the remainder of your debt. If you pay off your debt faster, there will be less of an amount for interest to be charged on so it will reduce.

3. It is important to check your credit report as often as you can. It will help you monitor your information so that you can make adjustments to it or to your lifestyle if need be. You can find out if information is in anyway incorrect and act on it under The Fair Credit Reporting Act (FCRA) if necessary.