ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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going to jail
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repossession of your things
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higher credit score
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increased overdraft fees
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Detailed explanation-1: -A car repossession could happen if you fall behind on monthly payments. This can hurt your credit for up to seven years. It could also cost you thousands of dollars. Not only could you lose your car, but if the bank resells the vehicle for less than what you owe, you may be held responsible for paying the difference.
Detailed explanation-2: -When you stop paying a personal loan, it could result in your account going into default, the balance being sent to collections, legal action against you and a significant drop in your credit score.
Detailed explanation-3: -Repossession can show up on credit reports and impact credit, but it won’t stick around forever. A repossession can result in a derogatory mark on credit reports, which can stay on the reports for up to seven years.
Detailed explanation-4: -Banks and lenders are required to report unpaid loans to the Credit Management Association of the Philippines (CMAP), which then computes credit scores and determines corresponding penalties that can forfeit you from applying for new loans for at least five years.