Which of the following can greatly affect your credit score?

Study for the FDIC AIDT Ready-To-Work (RTW) Money Smart Exam. Practice with multiple-choice questions, each with hints and explanations. Prepare for your assessment!

Payment history is a crucial factor in determining your credit score because it reflects how reliably you have paid your debts on time. This includes credit cards, loans, and any other financial obligations. A strong payment history indicates to lenders that you are a responsible borrower, which can enhance your creditworthiness. Conversely, missed or late payments can significantly hurt your credit score, as payment history accounts for a substantial portion of the scoring formulas used by credit bureaus.

The other options, such as job status, length of employment, and your location, do not have a direct impact on your credit score. While these factors may influence a lender's decision when assessing your overall financial health or ability to repay loans, they are not included in the calculation of your credit score itself. Therefore, maintaining a good payment history is essential for a high credit score.

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