Scenario 4:
You just got the keys to your first apartment. You also have a new credit card with a $4,000 limit and you use it to
furish your new place. Before you know it, you've bought a TV, a couch and a dining room table. When you get the credit card bill, you realize you’ve spent your full credit limit of $4,000.
the credit card bill, you realize you've spent your full credit limit of $4,000.
Does your credit score go up or down?
Why does it go up or down?
If your score goes down, how can you fix it?

You want to purchase a new vehicle and you have your heart set on a brand new SUV. You take out a loan to pay for the car, but after six months you begin to fall behind on payments and incur late fees.

1. Does your credit score go up or down?

Your Credit Card score will go down.

2. Why does it go up or down?

It went down because you were late on your payments.

3. If your score goes down, how can you fix it?

Pay your payments on time.

Scenario 2:

You’ve been eager to buy a new cell phone for months, and now you’re ready to make it happen. You use your credit card to purchase the phone and you set up automatic billing to pay the monthly expenses. At the end of each month, you pay the credit card bill in full.

1. Does your credit score go up or down?

It goes up.

2. Why does it go up or down?

You pay your bills on time.

3. If your score goes down, how can you fix it?

It doesn't go down.

Scenario 3:

Your first semester of college, you take out a small loan to help pay for books. Despite being busy, you get a part time job. Although you don’t have to pay your loan back until you graduate, you’ve saved enough by the end of the semester and you will pay off the loan in full.

1. Does your credit score go up or down?

Your score will go up.

2. Why does it go up or down?

You will pay the loan back in full.

3. If your score goes down, how can you fix it?

It doesn't go down.

ogorwyne ogorwyne · Answer 2 · 2022-06-03T13:50:06+02:00

The credit score of the person is going to go down because it would mean that they have no credit left.

What is a credit score?

This is a score that tells how a person is performing based on the credit that they apply for from financial services.

The credit score is going to go down because it would mean that they would be needing more credit.

If the score goes down the best way to make it rise is by making payments on time for the credit collected.