Choose wisely. There is only one correct answer to each question.
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1.
Why might potential lenders be interested in knowing how many times you have changed your address?
If you move frequently, that may indicate instability to them. Even if you are not financially unstable, lenders may still see it that way.
2.
What is the main reason behind using a credit card to buy things that you already have cash for?
It helps build a good credit record. Having the money already on hand makes it easy to pay your bill, and in the future, you will benefit from the enhanced credit history.
3.
Personal loans from banks or credit unions are _______.
Secured or unsecured. They may be either, depending on what you qualify for.
4.
Why is it advantageous to apply for your first credit card at your bank or credit union?
It already has a sense of your financial health. Because of this, it may be willing to offer you a credit card.
5.
A secured credit card is one that is backed by some asset.
True. The asset protects the lender if you default on your payments.