Question

Of the following, which statement or statements accurately represent possible effects of a long-term credit purchase on your credit score?

I. Showing a willingness to pay high interest rates increases your score.
II. Making only minimum payments for an extended time can hurt your score.
III. Regularly paying off a credit balance can boost your score.
a.
I and III
b.
II only
c.
II and III
d.
I, II, and III

Answer 1

c. II and III

Explanation:
- I is false — interest rates themselves don’t directly raise your credit score.
- II is true — making only minimum payments keeps balances high, raising credit utilization and can hurt your score.
- III is true — regularly paying off balances lowers utilization and, along with on-time payments, can boost your score.