What do banks and other lenders use to evaluate your ability to repay a loan?

Question

(1 point)
• bankruptcy
credit score
• debit
• interest rate

If Joan is unable to pay her mortgage, the bank may take her house away from her. Which of the following best describes Joan's house? (1 point)
bankruptcy
• collateral
• credit
• interest

Answer 1

1. Banks and other lenders use credit score to evaluate your ability to repay a loan.

2. Joan's house is best described as collateral.