The following statement about credit is correct except:

JAMB Commerce 2023 374 views
Source: JAMB · 2023

The following statement about credit is correct except:

  1. Credit can help build a positive credit history.
  2. Credit can lead to financial independence.
  3. Credit always comes with interest charges.
  4. Credit is free of any costs. ✓
Explanation

Credit is never free. It carries costs such as interest, fees and penalties for late payment. So the statement that credit is free of any costs is the incorrect one.

The other statements are true. Good repayment builds a credit history and can help a person become financially independent.

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