Which statement best identifies two major factors that influence a credit score and two strategies to build it responsibly?

Which statement best identifies two major factors that influence a credit score and two strategies to build it responsibly?

• A. Factors: payment history and credit utilization; Strategies: pay on time; keep balances low.
• B. Factors: income and employment status; Strategies: open many new accounts; maximize spending.
• C. Factors: number of mortgages only; Strategies: close old accounts; ignore statements.
• D. Factors: length of credit history and new credit; Strategies: monitor credit reports; limit new accounts; use credit wisely.

Answer: (D)

The main idea is that a credit score reflects your long-term borrowing behavior and how recently you’ve opened new credit. This is why identifying length of credit history and new credit as the influential factors makes sense: a longer history gives the scoring model more reliable data, while new credit activity can signal risk if it happens often in a short period. Pairing those factors with practical steps to build responsibly strengthens your profile: monitor your credit reports regularly so you can catch and fix errors or signs of fraud, limit the number of new accounts to avoid multiple hard inquiries, and use credit wisely by paying on time and keeping balances low relative to limits. These actions directly support a healthier score over time. The other options rely on factors not used in standard scoring (like income or employment status) or suggest risky or ineffective practices (opening many new accounts, maxing out cards, closing old accounts, or ignoring statements), which don’t help in building a solid credit history.

The main idea is that a credit score reflects your long-term borrowing behavior and how recently you’ve opened new credit. This is why identifying length of credit history and new credit as the influential factors makes sense: a longer history gives the scoring model more reliable data, while new credit activity can signal risk if it happens often in a short period.

Pairing those factors with practical steps to build responsibly strengthens your profile: monitor your credit reports regularly so you can catch and fix errors or signs of fraud, limit the number of new accounts to avoid multiple hard inquiries, and use credit wisely by paying on time and keeping balances low relative to limits. These actions directly support a healthier score over time.

The other options rely on factors not used in standard scoring (like income or employment status) or suggest risky or ineffective practices (opening many new accounts, maxing out cards, closing old accounts, or ignoring statements), which don’t help in building a solid credit history.