Question

question 3 (14.2 points)
how do credit scores affect the ability to obtain loans, credit cards, and favorable interest rates?
a) lower credit scores result in better loan terms and lower interest rates
b) credit scores have no impact on loan terms or interest rates
c) credit scores only affect the ability to obtain credit cards, not loans
d) higher credit scores lead to better loan terms, lower interest rates, and higher credit limits

Explanation:

Credit scores are a measure of credit - worthiness. Lenders view higher scores as lower risk, thus offering better loan terms (such as lower interest rates and higher credit limits), while lower scores indicate higher risk and result in less favorable terms.

Answer:

d) Higher credit scores lead to better loan terms, lower interest rates, and higher credit limits