Question

Which is the best recommendation the housing counselor should give this client to help improve her credit score?

A- Set up automatic credit card and loan payments to ensure on time payment
B- Apply for a loan to consolidate the credit card and auto loan balances
C- Apply for a credit card with a lower interest rate and transfer the balance of the current card
D- Pay more than the minimum payment each month to reduce the credit card balance

Answer 1

The best recommendation the housing counselor should give this client to help improve her credit score is to pay more than the minimum payment each month to reduce the credit card balance.

Step-by-step explanation:

The best recommendation the housing counselor should give this client to help improve her credit score is option D - Pay more than the minimum payment each month to reduce the credit card balance.By paying more than the minimum payment each month, the client will be able to reduce the credit card balance faster. This will result in lower interest charges and can help improve the credit score over time. It shows responsible credit card usage and a commitment to paying off debt.For example, if the client has a $1,000 credit card balance and the minimum payment is $25, paying only the minimum will result in prolonged debt and high interest charges. However, if the client pays $50 or more each month, it will help reduce the balance sooner, saving money on interest and improving the credit score.