Which of the following can negatively impact a credit score?

High credit utilization can negatively impact a credit score because it reflects the ratio of current credit card balances to credit limits. When individuals use a significant portion of their available credit, it can signal to lenders that they may be over-reliant on credit, which may suggest a higher risk of default. A high utilization rate, generally considered to be over 30%, can lead to a lower credit score because it indicates potential financial distress. Managing this ratio effectively by maintaining lower balances relative to credit limits can help keep a credit score in a favorable range.

In contrast, on-time payments consistently contribute positively to credit scores, as payment history is a crucial factor in credit scoring. Diverse credit types provide a broader view of credit management and positively influence scores when managed responsibly. A lengthy credit history is beneficial as it demonstrates experience with credit management, allowing creditors to make assessments based on a longer track record of behavior. Together, these factors underscore the importance of maintaining a balanced credit profile to achieve and sustain a good credit score.