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

please select the best answer from the choices provided

a
b
c

Explanation:

• Analyze each statement:
• I. Owing a lot of money: High debt can harm credit score as it increases credit utilization ratio.
• II. Having many lines of credit: Multiple credit lines, especially if newly opened, can lower credit score due to hard inquiries and increased perceived risk.
• III. Making steady payments: This is good for credit score as it shows responsible credit behavior.
• So, I and II are harmful to credit score. The option with I and II is a. I and II.

Answer:

a. I and II