Question

1. which of these individuals is likeliest to have the highest credit score? explain your choice.

• james has one credit card he opened less than six months ago. hes never missed a payment, always pays in full, and has $10,000 in savings, but limited credit history.
• akhil has a history with credit cards and student loans, with only one missed payment in two years. he usually carries a balance and recently applied for three new credit cards to earn rewards.
• cassandra is 22 and has opened one new credit card each year since she was 18, now holding five. she uses just two regularly, pays in full every month, and has never missed a payment.
• jaycee is 28 and has had one credit card since she was 18, plus student loans and a car loan. she pays her card in full each month but often maxes it out and occasionally misses payments.

Explanation:

Credit scores are boosted by on-time payments, long positive credit history, low credit utilization, and responsible account management.

• James has a short credit history (under 6 months), which limits his score despite on-time payments.
• Akhil has a missed payment and recent new credit applications, which hurt his score.
• Cassandra has a long (10-year) positive credit history, on-time payments, and no missed payments, with a reasonable number of accounts.
• Jaycee has occasional missed payments and maxed-out credit, which lower her score.

Cassandra's long track record of responsible credit use makes her the likeliest to have the highest score.

Answer:

Cassandra is likeliest to have the highest credit score.