Question

Which of the following scenarios will most negatively impact a credit score?

keeping only one type of credit

applying for many different credit cards

keeping a high balance on credit cards

having a short credit history

Answer 1

This is not mathematics.
Although,

Keeping a credit card will not change anything except have a positive impact on credit score for being responsible with it.

Applying for many credit cards drops your credit score because it makes one more of a liability to debt.

Keeping a high balance on credit cards does not necessarily mean that you are not paying it off or that you are over the limit as some credit cards are meant for really high value purchases.

Having a short credit history does not change your credit score but instead is related to the liability process that a creditor looks at to decide if they would like to lend to you.


Knowing all that which has a the most "negative impact" on the credit score?

Answer 2

thank you can you help me with another one?

Answer 3

I can attempt to yes, and to check your answer , "Applying for many credit cards" has the most negative impact by dropping your credit score.

Answer 4

Kayla uses her credit card to purchase a new television for $487.89. She can pay off up to $175 per month. The card has an annual rate of 23.5% compounded monthly. How much will she pay in interest?

$22.78

$156.76

$8.95

$18.87

Answer 5

Compounded Interest, you can see the keyword is compounded.
Compounded Interest Formula:
\[A = P(1+\frac{ r }{ n })^{rt}\]
Where,
A = Amount after compounded n years.
P = Principal amount borrowed or invested (starting amount)
r = 'annual' rate of interest as decimal form
t = number of years
n = number of times the interest is compounded per year

Answer 6

i dont understand.

Answer 7

P = 487.89$
A = ?
r = 23.5% = 0.235
t = 1 year
n = 3 times since at 175 she will have paid it off.

Answer 8

It will be up to you to solve for the amount paid after that time goes by and then subtract your initial amount borrowed from that to see how much interest is paid.

Answer 9

You can also tell right away how much interest will be paid by looking at your answer choices because even after the first payment is made there is a really high interest of 23.5 percent which is close to a quarter of the amount borrowed which will be over 100$