Question
Ida just paid her friend back the cash that she owed her. How is Ida's repayment of the loan shown on a credit score? Choose 1 answer: A Her credit score will go down. B Her credit score will rise. C Her credit score will stay the same.
Answer
4.3
(249 Votes)
Vesper
Professional · Tutor for 6 years
Answer
### B. Her credit score will rise.
Explanation
## Step 1: Understanding Credit Score Influences### Credit scores are influenced by various factors, including payment history, amounts owed, length of credit history, new credit, and types of credit used. Repaying a loan can affect these factors.## Step 2: Payment History Impact### Payment history is a significant factor in credit scores. Timely repayment of debts positively impacts the credit score by demonstrating responsible financial behavior.## Step 3: Analyzing the Scenario### Ida repaid her friend, which indicates she fulfilled her debt obligation. This action aligns with positive payment history, suggesting a potential rise in her credit score.## Step 4: Conclusion### Given that timely repayment of debts generally improves credit scores, Ida's repayment is likely to result in an increase in her credit score.