which of the following is likely to keep harry from being approved for a loan?\na. harry’s debt-to-income is…
which of the following is likely to keep harry from being approved for a loan?\na. harry’s debt-to-income is a stable 39%.\nb. harry’s credit score currently sits at 702.\nc. harry has a gross monthly income of $3800.\nd. harry was able to offer his vacation home as collateral for the loan.\nplease select the best answer from the choices provided
Answer
Brief Explanations:
To determine what helps loan approval, we analyze each option:
- Option a: A debt - to - income ratio of 39% is relatively high (many lenders prefer lower, like below 36%), so this is not favorable.
- Option b: A credit score of 702 is a good score (usually scores above 670 are considered good), which makes a borrower more likely to be approved as it shows responsible credit behavior.
- Option c: A gross monthly income of $3800 alone doesn't indicate ability to repay without knowing expenses/debts, so it's not as strong a factor as credit score or collateral in this context.
- Option d: Using a vacation home as collateral is possible, but not all loans require collateral, and a good credit score is a more universal positive factor for loan approval.
Answer:
b. Harry’s credit score currently sits at 702.