Which of the following tips will NOT help you maintain or increase your credit score?

• A. Opening several new credit accounts at once
• B. Keeping your credit card balances low relative to your credit limit
• C. Paying your bills on time each month
• D. Regularly checking your credit report for errors

Answer: (A)

Verified step by step guidance

1. Understand the concept of a credit score: A credit score is a numerical representation of your creditworthiness, based on your credit history. It is influenced by factors such as payment history, credit utilization, length of credit history, types of credit, and recent credit inquiries.
2. Analyze the options provided: Review each option to determine whether it positively or negatively impacts your credit score. For example, paying bills on time and keeping credit card balances low are generally positive behaviors for maintaining or increasing your credit score.
3. Evaluate the impact of opening several new credit accounts at once: Opening multiple new accounts in a short period can negatively affect your credit score because it may lead to hard inquiries on your credit report and reduce the average age of your credit accounts.
4. Consider the importance of regularly checking your credit report for errors: Monitoring your credit report helps you identify and dispute inaccuracies that could harm your credit score. This is a proactive step to maintain or improve your score.
5. Identify the behavior that does NOT help maintain or increase your credit score: Based on the analysis, opening several new credit accounts at once is the action that does not contribute positively to your credit score.