Question

which of the following will likely lower your credit score?
- you recently declared bankruptcy
- all of your accounts date five years or more
- all your low balances on your credit cards
- you are three months away from paying off your 5-year loan

Answer 1

1. You recently declared bankruptcy - This will likely lower your credit score as it indicates to lenders that you may have difficulty managing your finances.
2. All of your accounts date five years or more - This may potentially lower your credit score as older accounts can show a longer credit history, which can be beneficial for your score.
3. You are three months away from paying off your 5-year loan - This will likely have a positive impact on your credit score as paying off a loan can demonstrate responsible financial behavior.
4. All your low balances on your credit cards - This is unlikely to lower your credit score. In fact, having low credit card balances can have a positive impact on your score.