Think about activities that can contribute to creating a strong credit history. Which of the following actions will contribute to this outcome?

Will this activity help build a strong credit history?

No

Yes

Ask a bank for a small, short$-$term loan; put the money in savings; and pay the loan back on time.

Open a savings account and manage it properly.

Use your credit card frequently and accrue a large outstanding balance.

Close most of your old existing credit card accounts

Which of the following is an indication that you are using too much credit and may be approaching or in financial distress? Check all that apply.

Your credit card balances are within $30\%$ of the card's credit limit$.$

Taking add$-$on loans

Requesting increases in your credit limit

You pay your bills in full and on time.

Paying late or skipping credit payments