A way to establish a good credit record is to

A way to establish a good credit record is to

• A. Pay bills late to negotiate better terms
• B. Pay bills when they are due
• C. Borrow as much as possible
• D. Use credit cards for all purchases regardless of need

Answer: (B)

On-time payment builds a solid credit history. Lenders rely heavily on whether you pay bills when they’re due, and this timely behavior is a clear signal of reliability. A history of paying on time directly strengthens your credit score, while missed or late payments can harm it for years. Borrowing a lot or using credit for every purchase can raise your overall debt and credit utilization, which can lower your score and suggest higher risk to lenders. So paying bills on time is the best way to establish a good credit record.

On-time payment builds a solid credit history. Lenders rely heavily on whether you pay bills when they’re due, and this timely behavior is a clear signal of reliability. A history of paying on time directly strengthens your credit score, while missed or late payments can harm it for years. Borrowing a lot or using credit for every purchase can raise your overall debt and credit utilization, which can lower your score and suggest higher risk to lenders. So paying bills on time is the best way to establish a good credit record.