Scenario 1: You want to purchase a new vehicle and you have your heart set on a brand new SUV. You take out a loan to pay for the car, but after six months you begin to fall behind on payments and incur late fees.
Does your credit score go up or down? My credit score would go down.
Why does it go up or down? My credit score would go down because if I were to fall behind on my payments for the car, it would have a negative impact on anything involving it.
If your score goes down, how can you fix it? I can fix my credit score by attempting to make more money by doing small jobs for people or by getting a second job and spending portions of my paycheck towards the car.
Scenario 2: You’ve been eager to buy a new cell phone for months, and now you’re ready to make it happen. You use your credit card to purchase the phone and you set up automatic billing to pay the monthly expenses. At the end of each month, you pay the credit card bill in full.
Does your credit score go up or down? My credit score would go up for paying everything on time without any debts.
Why does it go up or down? My credit score would go up because I was able to pay the required amounts in the time given.
If your score goes down, how can you fix it? There is no need to fix it in this scenario.
Scenario 3: Your first semester of college, you take out a small loan to help pay for books. Despite being busy, you get a part time job. Although you don’t have to pay your loan back until you graduate, you’ve saved enough by the end of the semester and you will pay off the loan in full.
Does your credit score go up or down? My credit score would go up.
Why does it go up or down? My credit score would go up because I would have finished paying off my student loans before I even really needed to.
If your score goes down, how can you fix it? There is no need to fix it in this scenario.
Scenario 4: You just got the keys to your first apartment. You also have a new credit card with a $4,000 limit and you use it to furnish your new place. Before you know it, you’ve bought a TV, a couch and a dining room table. When you get the credit card bill, you realize you’ve spent your full credit limit of $4,000.
Does your credit score go up or down? If I did not exceed my credit limit, my credit score would remain the same as long as I could pay the bill.
Why does it go up or down? It would most likely go down due to reaching the limit and possibly being unable to pay off the bill that follows.
If your score goes down, how can you fix it? I could fix my credit score if it goes down by working more and spending portions of what I pay towards my credit card.
Scenario 5: You’re planning a trip to Disney World with friends over winter break. You get a credit card offer in the mail that lets you earn airline miles for every $1 you spend, plus bonus miles for opening a new account. Even though you opened three other credit cards this year, you jump on the opportunity and sign up immediately because you haven’t bought your flight to Florida yet.
Does your credit score go up or down? My credit score would slightly go down.
Why does it go up or down? It would go down due to the fact that I opened more credit cards in the same year.
If your score goes down, how can you fix it? I could fix it by not applying for the new credit card at all or rarely using any older ones; closing credit cards would only drop my credit score even more.
Does your credit score go up or down? My credit score would go down.
Why does it go up or down? My credit score would go down because if I were to fall behind on my payments for the car, it would have a negative impact on anything involving it.
If your score goes down, how can you fix it? I can fix my credit score by attempting to make more money by doing small jobs for people or by getting a second job and spending portions of my paycheck towards the car.
Scenario 2: You’ve been eager to buy a new cell phone for months, and now you’re ready to make it happen. You use your credit card to purchase the phone and you set up automatic billing to pay the monthly expenses. At the end of each month, you pay the credit card bill in full.
Does your credit score go up or down? My credit score would go up for paying everything on time without any debts.
Why does it go up or down? My credit score would go up because I was able to pay the required amounts in the time given.
If your score goes down, how can you fix it? There is no need to fix it in this scenario.
Scenario 3: Your first semester of college, you take out a small loan to help pay for books. Despite being busy, you get a part time job. Although you don’t have to pay your loan back until you graduate, you’ve saved enough by the end of the semester and you will pay off the loan in full.
Does your credit score go up or down? My credit score would go up.
Why does it go up or down? My credit score would go up because I would have finished paying off my student loans before I even really needed to.
If your score goes down, how can you fix it? There is no need to fix it in this scenario.
Scenario 4: You just got the keys to your first apartment. You also have a new credit card with a $4,000 limit and you use it to furnish your new place. Before you know it, you’ve bought a TV, a couch and a dining room table. When you get the credit card bill, you realize you’ve spent your full credit limit of $4,000.
Does your credit score go up or down? If I did not exceed my credit limit, my credit score would remain the same as long as I could pay the bill.
Why does it go up or down? It would most likely go down due to reaching the limit and possibly being unable to pay off the bill that follows.
If your score goes down, how can you fix it? I could fix my credit score if it goes down by working more and spending portions of what I pay towards my credit card.
Scenario 5: You’re planning a trip to Disney World with friends over winter break. You get a credit card offer in the mail that lets you earn airline miles for every $1 you spend, plus bonus miles for opening a new account. Even though you opened three other credit cards this year, you jump on the opportunity and sign up immediately because you haven’t bought your flight to Florida yet.
Does your credit score go up or down? My credit score would slightly go down.
Why does it go up or down? It would go down due to the fact that I opened more credit cards in the same year.
If your score goes down, how can you fix it? I could fix it by not applying for the new credit card at all or rarely using any older ones; closing credit cards would only drop my credit score even more.