ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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open as much credit as possible quickly
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use the maximum credit allowed on all your credit cards
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pay on time and as much of your balance as possible
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all of these
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Detailed explanation-1: -Prioritize and schedule your monthly payments, making sure to pay at least the minimum payment on time every month on all your accounts. Try to pay more than what’s due whenever possible. This helps to pay down debt faster, save on interest expense and may improve your credit score.
Detailed explanation-2: -Lenders generally see those with credit scores 670 and up as acceptable or lower-risk borrowers. Those with credit scores from 580 to 669 are generally seen as “subprime borrowers, ” meaning they may find it more difficult to qualify for better loan terms.
Detailed explanation-3: -Seven years is deemed a reasonable amount of time to establish a good credit history. After seven years, most negative items will fall off your credit report. However, the seven-year time period doesn’t guarantee your credit score and credit history will improve.
Detailed explanation-4: -Pay bills on time. Lenders consider payment records to help determine your reliability. Maintain employment and/or primary residence for 2 or more years. Lenders use this information to help determine your stability. Review your credit report. Regularly review for unauthorized activity and errors. Report issues immediately.