Which of the following is a result of excess unused credit capacity?
A)Wise spending of credit
B)FICO score reduced
C)Easy loan approval
D)Safety from identity theft
E)Safety from bankruptcy

Question

Quizplus · Accepted Answer

Excess unused credit capacity can actually reduce your FICO score because it suggests that you have access to a lot of credit, but you aren't actually using it. This can make lenders hesitant to lend to you because they don't know if you will use all of that credit at once and potentially become unable to repay them. Wise spending of credit isn't really a result of excess unused credit capacity - it's just good financial practice. Easy loan approval isn't necessarily a result either, as lenders may still be hesitant to lend to you despite a high credit limit. Safety from identity theft and safety from bankruptcy are also not really results of excess unused credit capacity - they are potential benefits of using credit responsibly.

Which of the Following Is a Result of Excess Unused