Question

lenders look at the credit score of a loan applicant in order to ______.
a. verify the applicant’s annual gross income
b. ensure that the applicant is financially responsible
c. ensure that the applicant’s credit score is as high as possible
d. see what types of loans the applicant has applied for in the past
please select the best answer from the choices provided
a
b
c
d

Explanation:

Lenders check a loan applicant's credit score to assess the applicant's financial responsibility and likelihood of repaying the loan. Option b aligns with this purpose, as a credit score reflects past financial behavior related to debt repayment, helping lenders determine if the applicant is financially responsible. Option a is about income verification (not directly related to credit score), option c is incorrect as lenders don't aim to inflate scores, and option d is about past loan types (credit score focuses on repayment behavior, not loan types).

Answer:

b. ensure that the applicant is financially responsible