Future Business Leaders of America (FBLA) Personal Finance Practice Test

Which of the following factors does NOT impact credit score?

1. Payment history

2. Length of credit history

3. Personal income

4. Types of credit used

The correct answer is: Personal income

The correct choice highlights that personal income does not directly influence a credit score. Credit scores are calculated based on various factors related to how a borrower manages their credit and debt obligations. These factors include payment history, which reflects whether bills and debts are paid on time; length of credit history, which shows how long accounts have been active; and the types of credit used, which indicates the mix of credit accounts, such as credit cards, installment loans, and mortgages. While income may play a role in a person's ability to repay debts and qualify for loans, it is not part of the credit scoring models used by the major credit bureaus. Therefore, fluctuations or changes in personal income do not alter credit scores directly, making this the correct choice in identifying a factor that does not impact credit scores.