Question

3. What are some factors that influence a person's credit rating or their ability to get credit? Explain how these factors influence the extension of credit.

Answer 1

Factors that affect credit scores are: Payment history, amount of outstanding debt, amount of time that the debt has been open, and the amount of new credit. Credit scores can also be affected by what types of credit you have (ie consumer, student debt, mortgages).

Answer 2

Answer:

a) Actual loan taken to loan balance

b) Ratio of credit card balance to  its credit

c) overall debt of a person

d) Number of inquiries on the credit of a person

e) Bill payment history

f) Amount coming to your account

Explanation:

The factors  influence a person's credit rating or their ability to get credit -

a) Actual loan taken to loan balance

b) Ratio of credit card balance to  its credit

c) overall debt of a person

d) Number of inquiries on the credit of a person - the higher the number of credit inquiries, the lower is the credit rating

e) Bill payment history

f) Amount coming to your account