Home
/
Business
/
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.

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.

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.

expert verifiedVerification of experts

Answer

4.3249 Voting
avatar
VesperProfessional · Tutor for 6 years

Answer

### B. Her credit score will rise.

Explain

## Step 1: Understanding Credit Score Influences<br />### 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.<br /><br />## Step 2: Payment History Impact<br />### Payment history is a significant factor in credit scores. Timely repayment of debts positively impacts the credit score by demonstrating responsible financial behavior.<br /><br />## Step 3: Analyzing the Scenario<br />### 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.<br /><br />## Step 4: Conclusion<br />### Given that timely repayment of debts generally improves credit scores, Ida's repayment is likely to result in an increase in her credit score.
Click to rate:

Hot Questions

More x