Sam wants to get a credit card. How would a strong credit history be a benefit to him? (1 point) Responses He would know his credit rating. He would know his credit rating. He would have a higher credit limit. He would have a higher credit limit. He would be able to pay his bills easier. He would be able to pay his bills easier. He would be able to avoid interest charges.
A strong credit history would benefit Sam in several ways:
1. He would know his credit rating: A strong credit history would provide Sam with a good credit score, which indicates his creditworthiness. This knowledge will help him understand how likely he is to be approved for credit cards and other loans in the future.
2. He would have a higher credit limit: Lenders are more likely to offer higher credit limits to individuals with strong credit histories. This means that Sam would have access to more available credit, which can be beneficial for managing expenses or dealing with emergencies.
3. He would be able to pay his bills easier: With a strong credit history, Sam would have a track record of responsible credit management. This could lead to lower interest rates on credit cards and loans, making his monthly payments more manageable.
4. He would be able to avoid interest charges: A strong credit history might qualify Sam for credit cards with introductory 0% APR offers. These cards allow individuals to make purchases without accruing interest for a specified period, potentially allowing Sam to save money on interest charges if he pays off the balance before the introductory period ends.