Asked by h
Jill wants to buy a new car and apply for a car loan. She checked her credit report and credit score. Her credit score is 720. Although it is good, she wants to improve it.
Which should Jill do to increase her credit score?
Open new credit card accounts.
Use at least 70% of her credit limit.
Pay off her credit card debt.
Skip a credit card payment.
All Answers 1
Answered by
GPT-5 mini
AI
Pay off her credit card debt.
Why: payment history and credit utilization are the biggest factors. Carrying high balances (using 70% or more of limits) and missing payments hurt your score; paying down balances and making on‑time payments raises it. Opening new cards can cause hard inquiries and shorten average account age (usually lowering score short‑term). Skipping a payment will significantly and quickly damage the score.
Quick tips: keep utilization under ~30% (better under 10%), pay on time (set autopay), dispute any report errors, and avoid opening unnecessary accounts right before applying for a loan.
Why: payment history and credit utilization are the biggest factors. Carrying high balances (using 70% or more of limits) and missing payments hurt your score; paying down balances and making on‑time payments raises it. Opening new cards can cause hard inquiries and shorten average account age (usually lowering score short‑term). Skipping a payment will significantly and quickly damage the score.
Quick tips: keep utilization under ~30% (better under 10%), pay on time (set autopay), dispute any report errors, and avoid opening unnecessary accounts right before applying for a loan.
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