What Jose should do to ensure his score stays high and allow him to buy his dream car is to <u>pay off his credit card balance each month</u>. This implies the correct answer is B.
No doubt, one of the quickest ways for Jose to maintain and improve his credit score is to pay off his credit card balance regularly.
If Jose pays off his credit balance often, he will also not be paying interest and will save a lot of money in the long run.
<h2>Further Explanation</h2>
A credit score depends on a customer’s credit history. It is a statistical number that measures or evaluates customer’s creditworthiness. A credit score is used by lenders to assess the possibility that customers will repay their debts.
A customer’s credit score is within 300 to 850. Customers that maintain a higher score indicates such an individual is more financially trustworthy.
Fair Isaac Corporation also called FISCO created the credit score model. This credit score model is used by financial institutions to assess their customer’s capacity to pay back their debts.
A credit score is always put into consideration whenever a lender makes decisions to offer credit. Customers with low credit scores; particularly below 640 are regarded as sublime borrowers.
Though all financial institutions determines their ranges for a credit score, the average score ranges according to Fair Isaac Corporation is listed below
- 800 – 850 = Excellent
- 740 – 799 = Very Good
- 670 – 739 = Good
- 580 – 669 = Fair
- 300 – 579 = Poor
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KEYWORDS:
- new car
- credit card balance
- pay off
- credit score
- customer
- banks
- credit union
