Question

melissa is a college student who has a cell phone, utilities for an apartment, and a credit card in her own name. she is not very careful with her bills and often pays these bills late, sometimes missing a payment entirely. if she tries to get a low - rate car loan after she graduates from college, what will likely be the effect be of her poor credit record? a. there will be no effect because creditors expect that many young people are sloppy with bills. b. she will be seen as someone with bad borrower “character” because she pays late and misses payments. c. she will have no problem because the behavior of college students cannot be used against them later in life. d. she will be a favored as a borrower because she has a long credit history and bill - paying experience.

Explanation:

Creditors assess a borrower's credit - worthiness based on payment history. Late and missed payments reflect poorly on a borrower's character in the eyes of creditors.

Answer:

B. She will be seen as someone with bad borrower "character" because she pays late and misses payments.