Question

of the following statements, which one or ones describe actions harmful to your credit score?
i. owing a lot of money
ii. having many lines of credit
iii. making steady payments
a. i and ii
b. ii only
c. i and iii
d. i only

Explanation:

To determine harmful actions to credit score:

• I. Owing a lot of money: High debt can increase credit utilization ratio, harming score.
• II. Having many lines of credit: Multiple credit lines (if mismanaged or with high balances) can raise risk perception, harming score.
• III. Making steady payments: This is positive, improving credit score.

So I and II are harmful.

Answer:

a. I and II