203003
QuizMultiple Choice

Bankruptcy

Question 203003 • FL-2102371-Personal Finance and Money Management

Ellis recently experienced financial difficulties that resulted in a negative credit history. He now realizes the importance of reestablishing a positive credit history to secure better financial opportunities and stability.What steps can Ellis take to rebuild and maintain a positive credit history?

Answer
A
Open new credit accounts to increase his total credit available.
B
Avoid the use of credit cards altogether to prevent the risk of debt.
C
Check credit reports regularly for errors and dispute inaccuracies.
D
Close existing accounts and lines of credit to start with a clean slate.

Explanation

Ellis should check his credit reports regularly and dispute any errors, since inaccurate negative information can harm his credit history. Choice C, “Check credit reports regularly for errors and dispute inaccuracies,” is the best step listed. Opening new accounts or closing existing ones does not automatically improve credit, and avoiding all credit use can make it harder to demonstrate responsible borrowing.

AI-written and checked against the verified answer.

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