Question

Which of the following actions is NOT recommended for establishing and maintaining a good FICO credit score? A) Making consistent, on-time payments on credit accounts. B) Maxing out credit cards and revolving credit. C) Keeping credit card balances low relative to credit limits. D) Monitoring credit reports for errors or discrepancies.

Answer 1

B) Maxing out credit cards and revolving credit

Explanation:

Maxing out credit cards and revolving credit refers to utilizing the full credit limit available on your credit cards. This can negatively impact your credit score as it may indicate a high credit utilization ratio, which is the percentage of available credit being used. It is generally advised to keep credit card balances low relative to credit limits to maintain a good credit score.