Question

which factor can negatively impact the \past payment history\ component of a credit score? filing for bankruptcy keeping a low balance on a credit card having a long credit history applying for a new credit card

Explanation:

To determine which factor negatively impacts the "past payment history" component of a credit score, we analyze each option:

• "Filing for bankruptcy": Bankruptcy is a severe negative event in a person's financial history, indicating an inability to repay debts, which directly harms past payment history.
• "Keeping a low balance on a credit card": This is a positive behavior as it shows responsible credit usage and does not negatively impact payment history.
• "Having a long credit history": A long credit history (if managed well) is generally positive, as it provides more data on responsible payment behavior over time.
• "Applying for a new credit card": This impacts the "credit inquiries" or "credit mix" components of a credit score, not the past payment history directly.

So, filing for bankruptcy is the factor that negatively impacts past payment history.

Answer:

A. filing for bankruptcy