ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Missing a car payment.
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Having a long credit history.
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Always baying the full balance of a credit card each month.
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Having a debit card.
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Detailed explanation-1: -Missed or delayed loan repayments or credit card EMIs have a negative impact on your credit score, as all the credit bureaus take a note of your payment history while generating your credit score.
Detailed explanation-2: -Missed or late payments on your loans, credit cards and even utility bills can all contribute to lowering your score. So can applying for too many credit products at once, defaulting on your loans or maxing out your credit.
Detailed explanation-3: -Common causes of a bad credit rating include failing to stick to your credit agreement, paying the bare minimum on your credit card each month, and falling victim to identity theft.
Detailed explanation-4: -A high credit utilization rate indicates you are overusing your credit and may be at risk of default, even if you haven’t yet missed a payment.
Detailed explanation-5: -1) Making Late Payments. Payment history determines 35% of your FICO® Score. 2) Ignoring Collection Activity. 3) Maxing Out Credit Lines. 5) Closing Credit Accounts. 6) Relying on a Single Major Credit Card to Build Your Credit. 7) Opening Multiple New Accounts.