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Why is having a long credit history with a few blemishes that were corrected better than a short history that is clear? No plagiarizing, please, thank you!
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Why is having a long credit history with a few blemishes that were corrected better than a short history that is clear?

No plagiarizing, please, thank you!

User Lobzik
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2 Answers

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21 votes

Answer:

Having a long credit history with a few blemishes that were corrected is generally considered better than having a short history that is clear. It demonstrates creditworthiness, stability, the ability to learn from past mistakes, favorable credit utilization, and provides more data for lenders to assess your financial behavior.

Step-by-step explanation:

I got 100% on edge 2023 - Financial Math B - Journal Activity

User Sohail
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22 votes
22 votes

Answer:

Lenders don't like risk because it can lose them money, so they're cautious on who they're lending to. They do this by checking people's credit history. They prefer people who have longer credit history even with a few blemishes that are corrected rather than lending to people who have a short clear history mainly because they have little to no experience and can be unpredictable what they may do.

Step-by-step explanation:

User Talha Khalid
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