You recently lowered your total amount of debt owed by paying off some bank loans. How will this affect your credit score? Choose 1 answer: A Your credit score will gain points. B Your credit score will lose points. C ) There will be no change in your credit score.

Question

You recently lowered your total amount of debt owed by paying off some bank loans. How will this affect your credit score? Choose 1 answer: A Your credit score will gain points. B Your credit score will lose points. C ) There will be no change in your credit score.

Answer 1

### A. Your credit score will gain points.

Answer 2

## Step 1: Understanding the Impact of Debt Repayment on Credit Score### Paying off bank loans generally reduces your total debt, which can positively impact your credit score by improving your debt-to-income ratio and demonstrating responsible financial behavior.

Question

You recently lowered your total amount of debt owed by paying off some bank loans. How will this affect your credit score? Choose 1 answer: A Your credit score will gain points. B Your credit score will lose points. C ) There will be no change in your credit score.

Answer

Answer

Explanation