Question

which detail is a limitation of a promotional offer that boosts a credit score? it permanently improves earning power. it can lead to higher interest rates in the long term. it only affects buying power, not the credit score. it often only gives a credit score a temporary boost.

Explanation:

A promotional offer that boosts a credit score is typically a short - term measure. Credit scores are based on long - term financial behavior such as payment history, credit utilization, length of credit history, etc. A promotional offer might be something like a temporary increase in credit limit (which could affect credit utilization ratio in the short - term). But once the promotional period is over (e.g., if the credit limit goes back to the original amount), if the underlying financial behavior (like high credit utilization when the limit was high) is not addressed, the credit score will likely return to its previous state.

• The first option “It permanently improves earning power” is incorrect because a credit - score - boosting promotional offer has no direct relation to earning power. Earning power is related to income sources, skills, education, etc.
• The second option “It can lead to higher interest rates in the long term” is not a typical limitation of a credit - score - boosting promotional offer. In fact, a better credit score (even if temporarily boosted) might lead to lower interest rates in some cases (when applying for new credit during the boost period).
• The third option “It only affects buying power, not the credit score” is wrong. A promotional offer (e.g., a 0% APR balance transfer offer which can help in paying off debt faster and thus improve credit score through better payment history if used correctly) can affect the credit score.
• The fourth option “It often only gives a credit score a temporary boost” is correct. As credit scores are calculated based on ongoing financial data, a one - time promotional offer (unless it leads to a permanent change in financial behavior like paying off debt during the promotional period) will not have a long - lasting impact on the credit score.

Answer:

It often only gives a credit score a temporary boost.