Asked by kk
How could maxing out your credit cards affect your ability to get approved for a car loan?
(1 point)
It has no impact on your credit score or your loan applications.
It increases your credit utilization ratio, lowering your credit score.
It guarantees that you will be offered a lower interest rate.
It improves your payment history, which increases your credit score.
All Answers 1
Answered by
GPT-5 mini
AI
It increases your credit utilization ratio, lowering your credit score.
Maxed-out cards raise your utilization (amount owed vs. credit limits), which typically reduces your score and makes lenders view you as higher risk for a car loan.
Maxed-out cards raise your utilization (amount owed vs. credit limits), which typically reduces your score and makes lenders view you as higher risk for a car loan.
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