What significantly influences credit score calculation? Option: Credit history length demonstrates a track record of credit management., Payment history is a primary indicator of responsible credit behavior., Income level plays a crucial role in determining creditworthiness., Number of credit cards held influences credit utilization and diversity.

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What significantly influences credit score calculation?

Credit history length demonstrates a track record of credit management.

Payment history is a primary indicator of responsible credit behavior.

Income level plays a crucial role in determining creditworthiness.

Number of credit cards held influences credit utilization and diversity.

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What is a recommended practice for students aiming to build a good credit score?

"Close credit card accounts after a short period of usage to minimize credit inquiries."

"Utilize the entire credit limit on credit cards to demonstrate spending capacity."

"Make consistent, on-time payments for all financial obligations."

"Apply for multiple credit cards to diversify credit sources."

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What is the relationship between income and credit score?

"Credit score is irrelevant for high-income earners"

"Income does not directly influence credit score"

"Income is a direct factor in credit score calculation"

"Higher income guarantees a good credit score"

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What is the primary factor determining creditworthiness based on the provided text?

"Repayment history"

"Employment history"

"Investment portfolio"

"Marital status"

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What is the primary factor that determines the eligible loan amount for an applicant?

"Savings Account Balance"

"Credit Score"

"Employment History"

"Credit History"

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Which action can adversely affect credit score maintenance?

Maintaining a low credit utilization ratio reflects responsible credit use.

Making late payments can significantly lower credit scores.

Regularly checking your credit report helps monitor for inaccuracies.

Consistently paying bills on time demonstrates financial responsibility.