The true statement among the options provided is: C. The longer you use credit responsibly, the higher your credit score will be.
This statement is accurate because credit scoring models typically take into account the length of your credit history when calculating your credit score. Having a longer credit history demonstrates to lenders that you have a track record of managing credit responsibly over an extended period. It allows them to assess your creditworthiness and make more informed decisions about extending credit to you.
Option A is false. Applying for several credit cards in a short period of time can actually have a negative impact on your credit score. Each time you apply for a new credit card, it generates a hard inquiry on your credit report, which can lower your score.
Option B is also false. People with low credit scores are generally considered higher risk borrowers. Lenders may view them as having a higher likelihood of defaulting on their debts.
Option D is false as well. Paying off your entire credit card balance is generally seen as responsible financial behavior and can have a positive impact on your credit score. It demonstrates that you can manage your debts and maintain a low credit utilization ratio, which is the ratio of your credit card balances to your credit limits.
In summary, the statement that is true is C: "The longer you use credit responsibly, the higher your credit score will be."