Question

what are the advantages of following a strict repayment schedule? check all that apply. it eliminates the need for secured credit. it prevents additional fees from being charged it guarantees the borrower possible new loans. it prevents some interest rate increases. it shows that the borrower is responsible.

Explanation:

• "It eliminates the need for secured credit": A strict repayment schedule does not remove the requirement for secured credit, which is based on collateral, not payment behavior.
• "It prevents additional fees from being charged": Late or missed payments often incur fees; following the schedule avoids these.
• "It guarantees the borrower possible new loans": While on-time payments improve creditworthiness, they do not guarantee new loan approvals, as lenders consider other factors.
• "It prevents some interest rate increases": Some loans have penalty rate hikes for missed payments; adhering to the schedule avoids these increases.
• "It shows that the borrower is responsible": Consistent on-time payments demonstrate reliable financial behavior to lenders and creditors.

Answer:

B. It prevents additional fees from being charged
D. It prevents some interest rate increases.
E. It shows that the borrower is responsible.