It's beneficial to use some of your available credit because:

• A. Responsible use of credit can help build a positive credit history.
• B. It guarantees lower interest rates on all future loans.
• C. Using all of your available credit will always improve your credit score.
• D. Unused credit lines are automatically closed by lenders if not used.

Answer: (A)

Verified step by step guidance

1. Understand the concept of credit utilization: Credit utilization refers to the percentage of your available credit that you are using. Responsible use of credit means using a portion of your available credit without maxing out your credit lines.
2. Learn about credit history: A positive credit history is built by demonstrating responsible borrowing and repayment behavior over time. This includes making payments on time and keeping your credit utilization low.
3. Clarify the impact on credit score: Using all of your available credit does not improve your credit score. In fact, high credit utilization can negatively impact your score as it may indicate financial stress.
4. Understand lender policies: Unused credit lines are not automatically closed by lenders unless specified in the terms of the credit agreement. However, inactivity may lead to account closure in some cases.
5. Recognize the benefits of responsible credit use: Responsible use of credit can lead to better credit scores, which in turn may result in lower interest rates on future loans and improved financial opportunities.