A (___________________) includes information
about how well you manage money.
A credit card
B checking account
C work-study program
D credit history
D credit history
is this true
Yes, it is true that a credit history contains information about how well an individual manages their money, including their credit accounts, loans, and payment history. This information is used by lenders and financial institutions to determine whether or not to approve an individual for credit or loans in the future.
The correct answer is D) credit history.
To understand why credit history is the correct choice, let's examine each option:
A) Credit Card: While credit cards play a role in managing money, they are not a tool used to evaluate how well you manage money. Instead, credit cards provide a line of credit that allows you to borrow money that you must repay later. How well you manage your credit card debt can impact your credit history, which is relevant to the question.
B) Checking Account: A checking account is a bank account that allows you to deposit and withdraw money. While it allows you to manage your day-to-day finances, it does not directly provide information about how well you manage money.
C) Work-Study Program: A work-study program is a form of financial aid that provides students with part-time employment opportunities to help cover educational expenses. While it can provide valuable experience in managing money, it does not explicitly assess your financial management skills.
D) Credit History: A credit history is a record of your borrowing and repayment activities. It includes information about loans, credit cards, mortgages, and other types of credit you have used. It indicates how responsible you have been in managing and repaying your debts. Lenders, landlords, and other institutions use your credit history to assess your creditworthiness and determine your financial reliability.
To obtain information about your credit history, you can request a credit report from credit reporting agencies. The three major credit reporting agencies in the United States are Equifax, Experian, and TransUnion. By accessing your credit report, you can review your credit history, check for any errors, and understand how well you have managed your finances in the past.