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All of the following actions can help you build a good record of creditworthiness except __ a. starting a checking and savings account, making regular deposits, and maintaining a balance b. maintaining a good attendance record and good grades in school C. changing jobs every one or two years d. charging small purchases and paying them on time

Question

All of the following actions can help you build a good record of creditworthiness except __
a. starting a checking and savings account, making regular deposits, and maintaining a balance
b. maintaining a good attendance record and good grades in school
C. changing jobs every one or two years
d. charging small purchases and paying them on time

All of the following actions can help you build a good record of creditworthiness except __ a. starting a checking and savings account, making regular deposits, and maintaining a balance b. maintaining a good attendance record and good grades in school C. changing jobs every one or two years d. charging small purchases and paying them on time

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IraVeteran · Tutor for 9 years

Answer

The action that does not help in building a good record of creditworthiness is (c) changing jobs every one or two years.

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## Step 1:<br />First, let's understand what creditworthiness is. Creditworthiness is a valuation performed by lenders that determines the possibility a borrower may default on his debt obligations. It considers many factors, including but not limited to, past credit history, current income, and the presence of existing debt.<br /><br />## Step 2:<br />Now, let's analyze each option:<br /><br />a. Starting a checking and savings account, making regular deposits, and maintaining a balance: This action demonstrates financial responsibility and stability, which can positively affect your creditworthiness.<br /><br />b. Maintaining a good attendance record and good grades in school: While this is generally a good habit, it doesn't directly affect your creditworthiness. Lenders typically don't consider school records when assessing creditworthiness.<br /><br />c. Changing jobs every one or two years: This action can negatively affect your creditworthiness. Lenders prefer borrowers with stable employment. Frequently changing jobs can be seen as a sign of instability, which could lead to potential financial instability.<br /><br />d. Charging small purchases and paying them on time: This action can help build a good credit history, which is a significant factor in determining creditworthiness.
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