Question

What financial behaviors would typically lead to low credit scores

A: Maxed our credit cards
B: Fully Paid balances
C: On-time payments
D: Long credit history

Answer 1

ANSWER: A) maxed out credit cards.

Lenders want to know that borrowers are able to pay down balances. High balances lead to lower credit scores. Lenders believe those with maxed out credit cards have a higher chance of defaulting and not paying their credit obligations.

Hope this helps! :)