Question

of the following, which statement or statements accurately represent possible effects of a long - term credit purchase on your credit score?
i. showing a willingness to pay high interest rates increases your score.
ii. making only minimum payments for an extended time can hurt your score.
iii. regularly paying off a credit balance can boost your score.
a. i and iii
b. ii only
c. ii and iii
d. i, ii, and iii

please select the best answer from the choices provided

Explanation:

• Statement I: Credit scores are not affected by the willingness to pay high interest rates; they depend on payment history, credit utilization, etc. So I is incorrect.
• Statement II: Making only minimum payments for a long time can increase credit utilization (if the balance is high relative to the limit) or show inconsistent payment behavior, which can hurt the credit score. So II is correct.
• Statement III: Regularly paying off a credit balance (especially in full or on time) shows responsible credit use, which can boost the credit score. So III is correct.

Since II and III are correct, the answer is the option with II and III.

Answer:

c. II and III