Knowee
Questions
Features
Study Tools

Which action is most likely to improve a person's credit score?A.Completing a credit card applicationB.Filing for bankruptcy protectionsC.Paying all credit card bills on timeD.Reaching the credit limit on a credit card

Question

Which action is most likely to improve a person's credit score?A.Completing a credit card applicationB.Filing for bankruptcy protectionsC.Paying all credit card bills on timeD.Reaching the credit limit on a credit card

🧐 Not the exact question you are looking for?Go ask a question

Solution

The action most likely to improve a person's credit score is C. Paying all credit card bills on time.

Here's why:

A. Completing a credit card application - This can actually lower your credit score slightly in the short term due to the lender performing a hard inquiry on your credit report.

B. Filing for bankruptcy protections - This will significantly lower your credit score and stay on your credit report for 7-10 years.

C. Paying all credit card bills on time - This is the most effective way to improve your credit score. Payment history is the biggest factor in calculating your credit score, making up 35% of the total.

D. Reaching the credit limit on a credit card - This can lower your credit score. It's best to keep your credit utilization (the percentage of your total available credit that you're using) below 30%.

This problem has been solved

Similar Questions

Consumers are most likely to have a good credit score if they:A.never miss their monthly credit card payments.B.fully complete a credit card application.C.reach the credit limit on multiple credit cards.D.file for bankruptcy to have their debts forgiven.

Which is a benefit of maintaining a high credit score?A.Paying lower interest rates on loansB.Increasing your debt-to-credit ratioC.Paying higher interest rates on loansD.Opening as many credit accounts as you wantSUBMITarrow_backPREVIOUS

Which of the following will help you have a good credit score?Group of answer choicesOpening a lot of credit accounts.Keeping your balance at the maximum available amount of credit.Paying off your debt as quickly as possible.All of the above

The most important thing you can do to help your credit score is what?Group of answer choicespay on timehave a lengthy credit historyhave different types of creditnot owe much on a credit card

Banks and credit card companies use credit scores to:A.calculate the amount of compound interest on an account.B.determine whether a person's debts can be forgiven in bankruptcy.C.seize people's property if they fail to pay back loans in a timely manner.D.decide whether an applicant is likely to pay back borrowed money.

1/2

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.