Question

which financial problems might cause a person to be considered a bad risk for a loan to purchase a home? check all that apply.
□ applying for loans to pay for college
□ making late payments
□ having more debt than income
□ filing for bankruptcy
□ paying a credit card balance in full each month

Explanation:

• Applying for college loans alone doesn't make someone a bad risk if payments are on track.
• Late payments signal poor credit reliability.
• High debt-to-income ratio means inability to take on more debt.
• Bankruptcy is a major red flag for lenders, indicating severe financial distress.
• Paying credit cards in full shows responsible financial behavior.

Answer:

• making late payments
• having more debt than income
• filing for bankruptcy