Question

Your credit card limit is $5,000, and your current balance is $4,500. Your credit score will increase by 10 points for every $250 decrease in your balance. At the end of the year you have paid down your balance to $2,500. By how many points has your credit score increased?

Answer 1

Answer:

80

Step-by-step explanation:

4500-2500 is 2000 dollars reduction, or money paid off.

For every 250 dollars, there is a 10 points increase. 2000 divided by 250 is 8. There are 8 sets of 250 dollars. So, for every 250 dollars (you have 8 of them), 10 points increase. Therefore, you multiply 10 by 8.

10x8 = 80. Your credit score has increased by 80 points.