BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Paying your students loans off one year early
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Paying off your car one year early
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Taking out loans you are unable to pay back on time
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Opening up a credit card at a store you shop at frequently
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Detailed explanation-1: -Late, missed, unpaid, or partially settled credit payments all result in a lower credit score. Such payments are reflected in the credit report and can hinder the loan or credit card approval process.
Detailed explanation-2: -Highlights: Even one late payment can cause credit scores to drop. Carrying high balances may also impact credit scores. Closing a credit card account may impact your debt to credit utilization ratio.
Detailed explanation-3: -Payment History: 35% Your payment history carries the most weight in factors that affect your credit score because it reveals whether have a history of repaying funds that are loaned to you.
Detailed explanation-4: -The primary factors that affect your credit score include payment history, the amount of debt you owe, how long you’ve been using credit, new or recent credit, and types of credit used. Each factor is weighted differently in your score.
Detailed explanation-5: -Since your credit files never include your race, gender, marital status, education level, religion, political party or income, those details can’t be factored into your credit scores.