13
AssignmentMultiple Choice

Understanding Credit

Question 13 • Personal Finance - EL3403

Which should Mark do to increase his credit score?

Answer
A
Pay off his personal loan for his entertainment system.
B
Skip a car payment.
C
Apply for as many credit cards as he can.
D
Make lower monthly payments on his current credit card bill.

Explanation

Paying off the personal loan can improve Mark’s credit by reducing his outstanding debt and showing that he repaid a loan as agreed. Skipping a car payment can hurt his payment history, and applying for many cards may lead to multiple credit inquiries. Making only lower payments on his current card does not necessarily reduce the debt or improve his record of paying on time.

AI-written and checked against the verified answer.

Previous
Next