Question

which situation would not improve a credit score?
making all loan payments on time
keeping older accounts open and in good standing
opening many new accounts
paying off credit card debt

Explanation:

To determine which situation does not improve a credit score, we analyze each option:

• Making all loan payments on time: Timely payments are a key factor in improving credit scores as they show responsible credit behavior.
• Keeping older accounts open and in good standing: Older accounts with a good history can positively impact credit age and history, helping improve the score.
• Opening many new accounts: Opening multiple new accounts in a short period can be seen as a sign of financial distress or risky behavior, and it can lower the average age of credit accounts, which may negatively affect the credit score (or at least not improve it).
• Paying off credit card debt: Reducing debt, especially credit card debt, lowers credit utilization, which is a significant factor in credit scoring and helps improve the score.

So, opening many new accounts is the situation that would not improve a credit score.

Answer:

C. opening many new accounts