Jacques maxes out his credit card and then misses several payments in a row before he started paying his bills. How could this affect his credit score and would there be any repercussions from that change?(1 point) Responses His credit score would most likely go up. A higher credit score could make lenders refuse to offer him credit or possibly offer him credit at a much higher interest rate. His credit score would most likely go up. A higher credit score could make lenders refuse to offer him credit or possibly offer him credit at a much higher interest rate. His credit score would not change. Credit cards cannot affect credit scores. Only home loans and auto loans (or any vehicle loans, such as boats) can affect your credit score. His credit score would not change. Credit cards cannot affect credit scores. Only home loans and auto loans (or any vehicle loans, such as boats) can affect your credit score. His credit score would not change. Since he started paying his bills, there would be no negative effects. His credit score would not change. Since he started paying his bills, there would be no negative effects. His credit score would most likely go down. A low credit score could make lenders refuse to offer him credit or possibly offer him credit at a much higher interest rate.

Answer 1

The correct response is:

His credit score would most likely go down. A low credit score could make lenders refuse to offer him credit or possibly offer him credit at a much higher interest rate.

Maxing out a credit card and missing several payments can significantly harm Jacques' credit score. Late payments are reported to credit bureaus and can lower his score. Additionally, a high credit utilization ratio (using a large percentage of his available credit) can further negatively impact his score. As a result, lenders may view him as a higher risk, potentially leading to denials for credit applications or offers with higher interest rates.