Question
Kate missed a payment on a loan a year ago when times were rough, but has made all payments on time since then. Which statement describes how her credit score will most likely be affected by this scenario?
(1 point)
Responses
There will be no impact; the on time payments will completely erase the mistake of the late payment.
There will be no impact; the on time payments will completely erase the mistake of the late payment.
There will be no impact; payment history only goes back six months.
There will be no impact; payment history only goes back six months.
The on time payments will not help; her score will be permanently lowered by the late payment.
The on time payments will not help; her score will be permanently lowered by the late payment.
Her score will go down at first, but the on time payments will slowly raise it back up again.
(1 point)
Responses
There will be no impact; the on time payments will completely erase the mistake of the late payment.
There will be no impact; the on time payments will completely erase the mistake of the late payment.
There will be no impact; payment history only goes back six months.
There will be no impact; payment history only goes back six months.
The on time payments will not help; her score will be permanently lowered by the late payment.
The on time payments will not help; her score will be permanently lowered by the late payment.
Her score will go down at first, but the on time payments will slowly raise it back up again.
Answers
GPT-4o mini
The correct statement is:
**The on time payments will not help; her score will be permanently lowered by the late payment.**
While consistent on-time payments can help improve a credit score over time, the late payment will remain on her credit report for several years and will continue to negatively impact her score until it falls off the report after that period.
**The on time payments will not help; her score will be permanently lowered by the late payment.**
While consistent on-time payments can help improve a credit score over time, the late payment will remain on her credit report for several years and will continue to negatively impact her score until it falls off the report after that period.