Financial Knowledge Assessment: Q9A
9. A healthy credit score falls between the range of:
- A. 600-649
- B. 650-699
- C. 700+
- D. None of the above.
Explanation: The correct answer is “C. 700+” because in this range of scores, companies generally feel that you are a safe individual to pay back a loan. Credit scores are determined from a variety of factors. Credit rating agencies look at payment history, total debt, length of credit history, types of credit, and new credit as determining factors for a credit score. Missed payments, high debt, little credit history, multiple different type of credit (mortgage, student loan, car loan), and newly obtained credit all negatively affect your credit score.
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