Ngoc likes to go shopping. Every time he goes to a new store, he fills out a credit card application for a store card so he can get a 15% discount on his purchases that day. Yesterday, he was trying to buy a new car but he was turned down for credit by the dealer. Ngoc can't understand why this happened since he thought he had pretty good credit. If you looked at his credit report, what most likely is the reason he was denied credit?

Question

Quizplus · Accepted Answer

Ngoc's habit of filling out credit card applications at every store he visits has likely resulted in too many recent inquiries on his credit report, which can be a red flag to lenders and impact his credit score negatively. This may be the reason he was denied credit for the car. Option A may also impact his credit score, but it was a long time ago, so it's less likely to be the primary reason for the denial. Option B may affect his ability to get a loan, but it's unlikely to be the primary reason for the denial. Option D is incorrect since there is enough information to make an educated guess about the reason for the denial.

Ngoc Likes to Go Shopping