Which action can hurt your credit score? I. Paying your phone bill late. II. Taking the bus to work. III. Maxing out several credit cards. IV. Using the internet to pay your bills

I would say the most likely answer would be paying a phone bill late and re the credit card maxing out as long as one paid the minimum balance required and on time that shouldn't affect it. Paying bills late will definitely affect it.One should check one's credit rating score periodically and it can be found on the internet through Google and can help one to get loans, etc.

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Ritushar Ritushar · Answer 2 · 2019-08-23T10:53:55+02:00

Option I is correct.

Late payment of phone bills will hurt the credit score.

Further Explanation:

Credit score: A credit score is a number that represents the creditworthiness of an individual based on their financial transaction history. If a person has a sound and on-time payment records, then he would have a high credit score and vice versa.

Low credit score means that a person is not paying their bills and dues on time. The credit score is used by the lenders to assess the capability of the borrower to repay the debt. Generally, lenders do not prefer to lend money to the person with a low credit score.

Actions that may hurt the credit score:

In the given case, the late payment of phone bill will hurt the credit score of the person. The late payment of phone bill will lower the credit, and it will adversely affect the creditworthiness of a person. The person would face problems to buy the goods and services on credit because of low credit score.

Justification for the correct and incorrect option:

I.

Paying your phone bill late: This is the correct option.

The failure of the phone bill payment will reduce the credit score.

II.

Taking the bus to work: This is an incorrect option.

Traveling from the bus would save money, but it will not affect the credit score.

III.

Maxing out several credit cards: This is an incorrect option.

Maxing out the credit cards will increase the credit limit, and the person would be able to borrow more funds.

IV.

Using the internet to pay your bills: This is an incorrect option.

The payment method does not affect the credit score.

Learn more:

Learn more about the money owed to the credit card company

https://brainly.com/question/8750254

Learn more about the common credit card fee

https://brainly.com/question/1124275

Learn more about making on-time minimum payment of credit card

https://brainly.com/question/6453895

Answer details:

Grade: Senior School

Subject: Business Studies

Chapter: Money & Banking

Keywords: Which action, hurt your, credit score, low, paying, phone bill, late, taking, the bus to work, maxing, out several, credit cards, using, internet, pay, your bills, actions, money, banking, credit card, failure, monthly payment.