BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Paying your bills on time.
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Paying down balances on your credit card accounts.
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Decrease your use of credit
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Applying for multiple credit cards in a short period of time (e.g., a week)
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Detailed explanation-1: -Late or missed payments. Collection accounts. Account balances are too high. The balance you have on revolving accounts, such as credit cards, is too close to the credit limit.
Detailed explanation-2: -Key Takeaways. Having too many open credit lines, even if you’re not using them, can hurt your credit score by making you look more risky to lenders. Having multiple active accounts also makes it more challenging to control spending and keep track of payment due dates.
Detailed explanation-3: -The major downsides of using credit when you don’t have the cash to pay it off later-besides the high-cost interest-includes hurting your credit, straining relationships with family and friends, and ultimately bankruptcy.
Detailed explanation-4: -Payment history has the biggest impact on your credit score, making up 35% of your FICO score. Credit utilization ratio comes in at a close second, accounting for 30% of your score.