Question

question 5
5 pts
which category accounts for about 15% of the credit score calculation and takes into consideration how long youve had your credit accounts?

• payment history
• length of credit history
• types of credit used
• amounts owed relative to limits

question 6
5 pts
which category may be negatively affected if a customer has recently taken out a new mortgage and applied for a few new credit cards?

• frequency of new credit
• types of credit used
• amounts owed relative to limits
• length of credit history

Explanation:

Question 5

To determine the correct option, we analyze each choice:

• "Payment History" relates to whether payments are made on time, not the length of credit accounts.
• "Length of Credit History" specifically considers how long credit accounts have been held and accounts for about 15% of a credit score.
• "Types of Credit Used" refers to the variety of credit (e.g., credit cards, loans), not the duration of accounts.
• "Amounts Owed Relative to Limits" is about credit utilization, not account length.

We evaluate each option:

• "Frequency of New Credit" is affected by recent credit applications (like a new mortgage and credit cards), as multiple new credit inquiries can negatively impact this category.
• "Types of Credit Used" is about the mix of credit, not new applications.
• "Amounts Owed Relative to Limits" is about credit utilization, not new credit.
• "Length of Credit History" is about how long accounts have been open, not new applications.

Answer:

B. Length of Credit History

Question 6