Question

Debbie is curious about her credit score. Which scenario will most negatively impact a credit score?

Answer 1

Answer:

Keeping a high balance on her credit cards.

Step-by-step explanation:

All of these factors will hurt Debbie's credit score.  However, one of the factors that has the biggest impact is called "credit utilization."  It is the percentage of credit that a consumer has used.  It is found by dividing the amount of credit used on the card by the total amount of credit extended.  The higher this percentage, the riskier the consumer is for a lender.

They are viewed as risky because to a lender, if you rack up a lot of debt, there is a higher chance they will not get repaid compared to consumers with little debt.

Answer 2

A high balance on just one card can hurt the credit score.