ECONOMICS
CREDIT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Obtain a car loan.
|
|
|
Open a new credit card.
|
|
|
Secure an apartment lease.
|
|
|
All of the above.
|
Detailed explanation-1: -A lower credit score will likely mean that you won’t qualify for the best cards on the market and you’ll have to pay much higher interest rates on your balance each month. You’re also less likely to be offered promotional rates, discounts or perks associated with your credit products.
Detailed explanation-2: -Higher rate of interest: A bad credit score not only reduces your chances of getting approved for a loan; it also puts you at the risk of paying higher rates of interest. You are a risky customer for the lenders, and that is why you may be charged a higher interest rate while granting a loan.
Detailed explanation-3: -Common causes of a bad credit rating include failing to stick to your credit agreement, paying the bare minimum on your credit card each month, and falling victim to identity theft.
Detailed explanation-4: -You’re too big of a risk for mainstream lenders. You pay more for your loan. Your insurance premiums may go up. You may miss out on career opportunities. You’ll have a harder time renting an apartment. More items