A History of Using Different Types of Credit Such as Mortgages

question 39

True/False

A history of using different types of credit such as mortgages, auto loans, and credit cards has a negative effect on one's credit score.

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Definitions:

Mutual Funds

Shareholder-funded investment platforms which engage in trading within diversified portfolios under professional management.

Lock-up Restrictions

Contractual limitations on the sale of securities, typically imposed on company insiders following an initial public offering.

Less Liquid

A term describing an asset that cannot be quickly sold or converted into cash without significant loss of value.

More Liquid

Describes an asset or market that allows for assets to be bought or sold quickly without significantly affecting the asset's price.