which would decrease your credit score? check all that apply.\n\na decrease in income\nan increase in debt…

which would decrease your credit score? check all that apply.\n\na decrease in income\nan increase in debt amount\na missed payment\na late payment\na long credit history

which would decrease your credit score? check all that apply.\n\na decrease in income\nan increase in debt amount\na missed payment\na late payment\na long credit history

Answer

Brief Explanations:

Credit scores are calculated based on several key factors including payment history, amounts owed (credit utilization), and length of credit history.

  • Payment History: This is the most significant factor. Late or missed payments negatively impact the score as they indicate a higher risk to lenders.
  • Amounts Owed: An increase in debt amount, especially relative to credit limits (utilization ratio), can lower a score.
  • Income: While important for loan approval, income is not a component of the credit score calculation itself.
  • Length of Credit History: A long credit history generally increases a score by demonstrating long-term reliability.

Answer:

an increase in debt amount a missed payment a late payment