2. Good uses of credit

Although you should strive to keep your debt to a level appropriate for your financial situation, there are several good uses of credit. Which of the following are good uses of credit? Check all that apply.

__ Obtaining a mortgage to purchase a home.

__ Obtaining a student loan to finance your education.

__ Using credit to pay for unexpected expenses such as emergency medical services or automobile repairs.

__ Using a credit card to protect yourself against seller rip-offs and frauds.

__ Taking advantage of free-credit promotions such as a reduced interest rate or a same-as-cash plan.

__ Using one credit card to make payments on another credit card.

__ Using a loan to open a business.

__ Using a credit card to pay for groceries or gasoline when you cannot afford to pay the balance in full each month.

__ Using a credit card for convenience, but only if the balance is paid in full each month.

__ Purchasing an overly expensive or otherwise unaffordable vehicle.

__ Using a credit card for hotel or car rental reservations.