When assessing a borrower's creditworthiness for a mortgage application in Canada, which of the following characteristics of a FICO score is generally considered most favourable by lenders?

Question: When assessing a borrower's creditworthiness for a mortgage application in Canada, which of the following characteristics of a FICO score is generally considered most favourable by lenders?

Answer options: ✅ A FICO score of 700 with a long credit history and diverse credit types.

• A FICO score of 750 with a short credit history, consisting primarily of credit cards.
• A FICO score of 680 with a history of missed payments within the last year.
• A FICO score of 800 but with no prior credit history in Canada.

Correct answer: A FICO score of 700 with a long credit history and diverse credit types.

Explanation: Lenders prefer a long and diverse credit history, including a mix of installment and revolving credit, as it demonstrates a consistent ability to manage various types of debt responsibly over time. While a higher score is generally better, a shorter history or recent negative events can be mitigating factors.