Question

if your credit card has a $1,000 limit and you owe $800, what is your utilization rate? 5 points a) 20% b) 30% c) 80% d) 100% clear selection what is the impact of missing a student loan payment? 5 points a) no impact if you pay double next month b) a late payment is reported and lowers your credit score c) it automatically cancels your loan d) your score goes up if you pay late once

Explanation:

Step1: Recall credit - utilization rate formula

The credit - utilization rate is calculated as $\frac{\text{Amount Owed}}{\text{Credit Limit}}\times100\%$.

Step2: Substitute values

We have $\text{Amount Owed} = 800$ and $\text{Credit Limit}=1000$. So the rate is $\frac{800}{1000}\times 100\%$.

Step3: Calculate the result

$\frac{800}{1000}\times100\% = 0.8\times100\%=80\%$.

Missing a student - loan payment typically results in a late payment being reported to credit bureaus, which lowers your credit score. Paying double the next month does not negate the late - payment record. Missing a payment does not automatically cancel the loan, and paying late does not increase your credit score.

Answer:

c) 80%