Question

Evaluate the consumer's credit in the following example:



Sebastian currently earns $80,000 a year. He has been building his credit for the past 7 years and has missed payments 12 times in the past year. He currently has used $9,500 out of his $10,000 credit. He has 1 credit card and home mortgage. He has had 4 credit inquiries in the last 6 months.

Group of answer choices

Poor Credit

Excellent Credit

Good Credit

Fair Credit

Answer 1

Poor Credit

Rationale: Frequent missed payments (12 in one year) and extremely high utilization (95% of available credit) are major negatives and will outweigh positives like steady income and 7 years of history. Multiple recent inquiries also hurt.