Which practice supports maintaining good credit when using a credit card?

• A. Pay the full balance each month and monitor interest rates and fees.
• B. Carry a high balance to build credit.
• C. Miss a payment occasionally to test the system.
• D. Close the account after one year.

Answer: (A)

Maintaining good credit with a credit card comes down to responsible use and avoiding costly mistakes. Paying the full balance each month shows you can handle debt responsibly, keeps you out of interest, and supports a strong payment history—the most influential part of your score. It also helps keep your revolving utilization low, since you’re not carrying balances into the next cycle, which lenders view favorably.

Monitoring interest rates and fees is important because it helps you avoid surprise costs that could push you to miss a payment or carry a balance you can’t manage. Staying on top of statements and terms ensures you’re not paying more than necessary and that you continue to meet payment obligations on time.

Carrying a high balance simply isn’t a reliable way to build credit. High balances raise your credit utilization ratio and can signal risk to lenders, which can hurt your score rather than help it. Missing a payment even occasionally hurts your payment history—the most impactful factor in your credit score. Closing the account after a year reduces your total available credit and can shorten your credit history, both of which can negatively affect your score.

So, paying in full and watching rates and fees directly supports a healthy credit profile.