Question

Kate missed a payment on a loan a year ago when times were rough, but has made all payments on time since then. Which statement describes how her credit score will most likely be affected by this scenario?

A.
There will be no impact; the on time payments will completely erase the mistake of the late payment.

B.
There will be no impact; payment history only goes back six months.

C.
The on time payments will not help; her score will be permanently lowered by the late payment.

D.
Her score will go down at first, but the on time payments will slowly raise it back up again.

Answer 1

D. Her score will go down at first, but the on time payments will slowly raise it back up again.

This is the most reasonable answer :)

Hope this helps

Answer 2

D. Her score will go down at first, but the on time payments will slowly raise it back up again.

Explanation:

This is most likely what will happen to Kate due to the missed payment. When you miss a payment on something like a loan, your credit score goes down. This is because your reliability as a payer decreases. However, this impact can be mitigated if your successive payments are on time. These other payments will slowly raise your score again.