Question

Which of these groupings contains three factors that are all used to calculate a credit score? a. A person's age, missed loan payments, and marital status b. Missed loan payments, high balances on credit cards, and ethnic origin c. Marital status, high balances on credit cards, and personal bankruptcy d. A person's age, high balances on credit cards, and ethnic origin e. Missed loan payments, high balances on credit cards, and personal bankruptcy

Answer 1

Answer:

e. Missed loan payments, high balances on credit cards, and personal bankruptcy

Explanation:

If you look at each of these factors, they are all closely related to an individual's past credit history and their ability to pay their debts on time. If you miss your payments or declare bankruptcy, you obviously are not in a very good financial position. Owing too much money to your credit cards is not a good sign since credit cards charge a very high interest rate and they are usually our last option when we consider financing options.