Question

the table shows information about hugos and bernards credit histories. $5,000 total credit limit $800 credit currently used paid a phone bill 3 days late one time has 2 credit cards, a student loan, a car loan, and store financing for new kitchen appliances $30,000 total credit limit $17,000 credit currently used has a 2 - year - old unpaid medical bill has 1 credit card who is likely to have the better credit score? hugo bernard

Explanation:

Step1: Analyze credit - utilization ratio

Hugo's credit - utilization ratio is $\frac{800}{5000}=0.16$ or 16%. Bernard's credit - utilization ratio is $\frac{17000}{30000}\approx0.57$ or 57%. A lower credit - utilization ratio is better for credit score.

Step2: Analyze negative marks

Hugo has only one minor negative mark of paying a phone bill 3 days late. Bernard has a 2 - year - old unpaid medical bill which is a more serious negative mark.

Answer:

Hugo