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Understanding Credit

Question 3 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

You opened three new credit card accounts in a month. increasedecreaseno effect

Answer
A
increase
B
decrease
C
no effect

Explanation

Opening three new credit card accounts in one month will generally decrease your credit score. Multiple applications can lead to hard inquiries, and new accounts lower the average age of your credit history. The correct choice is “decrease.”

AI-written and checked against the verified answer.

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