In FICO scoring, what does the 'new credit' factor reflect?

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Multiple Choice

In FICO scoring, what does the 'new credit' factor reflect?

Explanation:
New credit looks at how recently you’ve opened new accounts. Opening new accounts lowers the average age of your credit history, which lenders view as a risk because there’s less long-term history to assess. That’s why the best answer is the idea that new credit reflects the number of new accounts opened recently. The total limits of new accounts mainly relate to utilization, and the number of inquiries is a related signal but not the focus described here.

New credit looks at how recently you’ve opened new accounts. Opening new accounts lowers the average age of your credit history, which lenders view as a risk because there’s less long-term history to assess. That’s why the best answer is the idea that new credit reflects the number of new accounts opened recently. The total limits of new accounts mainly relate to utilization, and the number of inquiries is a related signal but not the focus described here.

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