ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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That you are hard to trust with a loan orcredit card
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That you do not make much money
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That you are young
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None of the above
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Detailed explanation-1: -A low credit score tells a lender you may have struggled to make payments toward credit cards or other debt in the past, so the lender may be taking on more risk by loaning you money. This would cause the lender to deny your application or approve a small loan at a high annual percentage rate.
Detailed explanation-2: -If you have bad credit (typically, a credit score below 630), you can still apply for credit cards and be approved. The catch? You might qualify only for cards specially designed for people with lower credit scores. The cards might have fees, high interest and fewer or no rewards for spending.
Detailed explanation-3: -While getting a loan with bad credit is possible, be aware the loan will be more costly. Unless you’re looking for an emergency loan, you may want to focus on improving your credit before borrowing money. Moving from a bad to an excellent credit score could take months or years.
Detailed explanation-4: -Key Takeaways. A person is considered to have bad credit if they have a history of not paying their bills on time or owe too much money. Bad credit is often reflected as a low credit score, typically under 580 on a scale of 300 to 850. People with bad credit will find it harder to get a loan or obtain a credit card.