Question

Companies report people to credit agencies if they

fail to pay their bills on time.
borrow too much money.
fail to use different types of credit.
use large amounts of credit at once.

Answer 1

Correct choices: fail to pay their bills on time; borrow too much money; use large amounts of credit at once.

Why: creditors and lenders report payment history, account balances, delinquencies/charge-offs and high credit utilization to the credit bureaus. “Fail to use different types of credit” isn’t a reported negative — credit mix is a scoring factor based on the accounts you have, but companies don’t report you for *not* having different types of credit.

If you want, I can explain how to check your credit report or how to reduce the chance of negative reporting.