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AssignmentMultiple Select

Understanding Credit

Question 16 • Personal Finance - EL3403

Which would decrease your credit score? Check all that apply.

Answer
A
a decrease in income
B
an increase in debt amount
C
a missed payment
D
a late payment
E
a long credit history

Explanation

A larger amount of debt can raise your credit utilization and make you appear riskier to lenders. Missed and late payments can also lower your score because payment history is an important factor. A decrease in income does not directly affect your credit score, and a long credit history generally helps it.

AI-written and checked against the verified answer.

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