Which of the following factors does NOT impact a consumer's credit score?

Which of the following factors does NOT impact a consumer's credit score?

• A. Payment history
• B. Length of credit history
• C. Salary
• D. Types of credit used

Answer: (C)

The factor that does not impact a consumer's credit score is salary. Credit scoring models primarily focus on a consumer's credit behavior rather than their income or financial status. Important elements of credit scores include payment history, which reflects whether bills are paid on time; length of credit history, which indicates how long the consumer has been using credit; and types of credit used, which considers the diversity of credit accounts (such as credit cards, mortgages, and retail accounts) in a consumer's profile. These factors assess creditworthiness based on past behaviors and existing credit commitment, but salary does not play a role in determining the credit score because it doesn't provide insight into credit management or repayment history.

The factor that does not impact a consumer's credit score is salary. Credit scoring models primarily focus on a consumer's credit behavior rather than their income or financial status. Important elements of credit scores include payment history, which reflects whether bills are paid on time; length of credit history, which indicates how long the consumer has been using credit; and types of credit used, which considers the diversity of credit accounts (such as credit cards, mortgages, and retail accounts) in a consumer's profile. These factors assess creditworthiness based on past behaviors and existing credit commitment, but salary does not play a role in determining the credit score because it doesn't provide insight into credit management or repayment history.