Respuesta :
The answer is D. II and III
Low credit score usually used by the debtor as an indicator that the person is not a good candidate for receiving loan.
Someone could only get a credit card score if their total earning usually not big enough to secure a loan or that person has proven to be irresponsible in paying his/her debt in the past.
Low credit score usually used by the debtor as an indicator that the person is not a good candidate for receiving loan.
Someone could only get a credit card score if their total earning usually not big enough to secure a loan or that person has proven to be irresponsible in paying his/her debt in the past.
Option D is correct.
The person having a low credit score may not be able to rent the apartment and more likely to miss a payment than someone with a high credit score.
Further Explanation:
Credit score: A credit score refers to a number that represents the creditworthiness of an individual based on their financial transaction history. If a person has a sound and on-time payment records, then he would have a high credit score and vice versa.
Low credit score means that a person is not paying their bills and dues on time. The credit score is used by the lenders to assess the capability of the borrower to repay the debt. Generally, lenders do not prefer to lend money to the person with a low credit score.
Consequences of low credit score: In the given case, the person with a low credit score may not be able to rent the desired apartment as the landlord would refuse to rent the apartment on the basis of low credit score. A person with the high credit score is more likely to repay the debt then a person having a low credit score.
Justification for the correct and incorrect answer:
a.
I. This is an incorrect option.
The person with a low credit score is less likely to make their payments on time.
b.
II. This is an incorrect option.
There are other consequences of having a low credit score.
c.
III. This is an incorrect option.
There are other consequences of having a low credit score.
d.
IV. This is the correct option.
The landlord may refuse to rent the apartment based on the low credit score and a person with a high credit score is more likely to make payments on time.
Learn more:
Learn more about the credit card utilization
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Answer details:
Grade: High School
Subject: Business Studies
Chapter: Money & Banking
Keywords: True, low credit score, probably, make on-time payments, II, able, rent, the apartment, want, III, likely, to miss a payment, with, a high credit score, creditworthiness, credit score, loan, rent.
