Question

mark wants to buy a new computer and apply for a new credit card to pay for it. he checked his credit report and credit score. his credit score is 620. it is fair, but mark wants a lower interest rate and a higher limit. so he wants to improve his score. which should mark do to increase his credit score?

• pay off his personal loan for his entertainment system.
• skip a car payment.
• apply for as many credit cards as he can.
• make lower monthly payments on his current credit card bill.

Explanation:

Paying off existing loans reduces debt, which positively impacts credit utilization and payment history—key factors in credit score calculation. Skipping payments, applying for multiple cards (hard inquiries), and making lower payments harm credit scores.

Answer:

A. Pay off his personal loan for his entertainment system.