Question

explaining the importance of reestablishing a positive credit history
which explains the importance of reestablishing a good credit history?
a positive credit
history may
increase a
person’s ability to
purchase a vehicle
or a home.
a positive credit
history might limit
new employment
opportunities.
a positive credit
history can be a
factor in being
denied the
approval for a
credit card.
a positive credit
history can result
in higher interest
rates.

Explanation:

To determine the correct answer, we analyze each option:

• Option 1: A positive credit history generally helps in getting approved for loans (like for a vehicle or home), so it increases the ability to purchase, which is a positive outcome and explains the importance of reestablishing it.
• Option 2: A positive credit history should not limit employment; in fact, some employers view good credit positively, so this is incorrect.
• Option 3: A positive credit history should increase the chance of credit card approval, not be a factor in denial, so this is incorrect.
• Option 4: A positive credit history leads to lower interest rates (as lenders see less risk), not higher, so this is incorrect.

Answer:

A. A positive credit history may increase a person’s ability to purchase a vehicle or a home.