Suppose the rate of inflation is 8% this year. What is the effect of this inflation rate on Sarah, Bob, and Milt. Who is left in worse shape with this inflation

You need to give the options.

Having a long credit that will be corrected is better that a short credit that is clear is simply because with long credit history, a prospective lender can see how you have operated your credit facility over a considerable period. nobody's credit history is perfect - everyone has at least 1 or 2 lapses on their record. have short history of your credit doesn't show patterns or trends of persistent late payments.