Question

which is most likely to happen to consumers with good credit? choose three correct answers.
they can use credit in emergencies.
they can be approved for loans.
they are denied a mortgage.
they can receive lower interest rates.
they are denied an unsecured loan.
they are forced into high interest rates.

Explanation:

• For consumers with good credit, they are seen as low - risk borrowers. So, they can use credit in emergencies (since lenders are more willing to extend credit to them), they can be approved for loans (due to their good creditworthiness), and they can receive lower interest rates (as lenders offer better terms to low - risk borrowers). The other options ("They are denied a mortgage", "They are denied an unsecured loan", "They are forced into high interest rates") are incorrect because good credit usually leads to approval for credit products and better (lower) interest rates, not denial or high rates.

Answer:

• They can use credit in emergencies.
• They can be approved for loans.
• They can receive lower interest rates.