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The appropriate use of credit Select one: a. requires the full limit of your monthly cash...

The appropriate use of credit

Select one: a. requires the full limit of your monthly cash flow and liquidity. b. means always going for the highest credit limit possible. c. should increase your credit score. d. means always making the minimum payment.

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Answer #1

The appropriate use of credit will always be inclined towards maximization of the credit score of the individual because maximization of the credit score will be reflecting upon the creditworthiness of the borrower and it will help him in order to gain a higher amount of loan in the near future and it will be also having a better reputation of the borrower from the perspective of various lenders in future.

Appropriate use of credit is not related to using the full limit of the the credit and making the minimum payment, because these are often related to decrease of the credit score and the creditworthiness of the borrower.

Correct answer would be option (C) should increase the credit score

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