ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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charge things she knows she can afford and pay the balance quickly.
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max out her credit cards.
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pay less than the minimum payments on her credit card bills.
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never borrow money and never check her credit score.
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Detailed explanation-1: -In commercial lending, creditors generally follow the same principles to evaluate a borrower’s creditworthiness. A creditor usually looks at three factors known as the “three Cs": capacity, capital, and character.
Detailed explanation-2: -Lenders consider your credit score, payment history and the current economic conditions when determining interest rates. Generally speaking, the higher your credit score, the less you can expect to pay in interest. But loan-specific factors such as repayment terms play a role too.
Detailed explanation-3: -The best way to manage your credit cards is to pay off every charge you make in a given month. In other words, you should only use your credit card if you have the actual cash to afford the purchase.
Detailed explanation-4: -Your debt will go to a collection agency. Debt collectors will contact you. Your credit history and score will be affected. Your debt will probably haunt you for years.