Sound financial planning dictates that you need a good idea of how much credit you can comfortably tolerate. One can do some measures to build a strong credit history. Which of the below mentioned points can be out of those measure?
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A. B. C. D.AB
The answer to this question is C. "Do not consult creditors immediately" can be out of the measures to build a strong credit history.
To build a strong credit history, it is important to have a good idea of how much credit you can comfortably handle. This involves understanding your income, expenses, and debt obligations. Once you have this information, you can take steps to manage your credit effectively.
Some of the measures that can help you build a strong credit history include fulfilling all the terms of credit, being consistent in making payments promptly, and consulting with creditors immediately if you are having difficulty making payments.
A. Fulfill all the terms of credit: Fulfilling all the terms of credit means paying your bills on time, staying within your credit limit, and avoiding late payments or overdrawn accounts. This shows that you are responsible with credit and can be trusted to manage your finances effectively.
B. Be consistent in making payments promptly: Being consistent in making payments promptly means paying your bills on time every month. This shows that you are reliable and can be counted on to meet your financial obligations.
C. Do not consult creditors immediately: Not consulting with creditors immediately if you are having difficulty making payments can be a mistake. It is important to communicate with your creditors if you are experiencing financial difficulties, as they may be willing to work with you to find a solution that works for both parties.
D. None of these: None of the above measures are incorrect or out of place when building a strong credit history. However, as mentioned above, option C is not a recommended step to take. It is essential to have an open communication channel with creditors, especially in cases where you cannot fulfill the terms of credit, and you need to find a solution to make payments more manageable.
In conclusion, it is essential to understand the importance of building a strong credit history and take steps to manage credit effectively. Fulfilling all the terms of credit, being consistent in making payments promptly, and consulting with creditors immediately if you are having difficulty making payments are all essential measures to help you build a strong credit history.