Question

Mark wants to buy a new computer and apply for a new credit card to pay for it. He checked his credit report and credit score. His credit score is 620. It is fair, but Mark wants a lower interest rate and a higher limit. So he wants to improve his score. Which should Mark do to increase his credit score?

A)Pay off his personal loan for his entertainment system.
B)Skip a car payment.
C)Apply for as many credit cards as he can.
D)Make lower monthly payments on his current credit card bill.

Answer 1

The answer is A

Explanation:

Answer 2

A)Pay off his personal loan for his entertainment system.

Explanation:

Late or delayed payments result in bad credit scores.

If Mark skips his car payment, this will make the matter more worse for him.

If Mark applies for as many cards as he can, this will further accumulate debts on him. Further purchase of cards does not help in getting good scores.

If Mark makes lower monthly payments on current bills, he will have to pay more interest and more amount after few months, when the amount will accumulate. This will take his scores lower.

So, the best possible option is option A. If he pays off his loan then his scores will improve.