Question

What steps can an individual take to improve a credit score? Check all that apply.

make all loan payments on time
check credit reports for accuracy
avoid opening credit accounts that are not needed
apply for several new credit cards
use all available credit
keep balances low

Answer 1

Apply:
- make all loan payments on time — Yes. Payment history is the biggest factor.
- check credit reports for accuracy — Yes. Fixing errors can raise your score.
- avoid opening credit accounts that are not needed — Yes. Fewer hard inquiries and a longer average account age help.
- keep balances low — Yes. Low credit-utilization ratio improves scores.

Do not apply:
- apply for several new credit cards — No. Multiple hard inquiries and new accounts can lower your score.
- use all available credit — No. High utilization (especially near 100%) hurts your score.