aria Ivanov has owned a successful clothing boutique chain for 20 years. She has gone into debt several times to expand her business. Each time, she paid off the debt in full sooner than expected.

Question

Question
Use the scenario to answer the question.
How will Maria’s record affect the loans she is offered?
(1 point)
Responses

She will be offered longer terms.
She will be offered longer terms.

She will be offered shorter terms.
She will be offered shorter terms.

She will be offered lower interest rates.
She will be offered lower interest rates.

She will be offered higher interest rates.

Answer 1

Maria's record of successfully paying off her debts sooner than expected will positively impact her creditworthiness. As a result, she is likely to be offered:

She will be offered lower interest rates.

This is because a strong repayment history indicates to lenders that she is a low-risk borrower.