Which of the following best explains why lenders care about the types of credit you have used? a) it shows that you have applied for many different credit cards in recent months, b) it shows that you can handle different kinds of loans responsibly c) it shows that you have steadily increased your use of credit over the years d) it shows the total amount of debt that you have incurred
1 answer
The best explanation for why lenders care about the types of credit you have used is: b) it shows that you can handle different kinds of loans responsibly.
Lenders look for signs that you can manage various types of credit responsibly, as it demonstrates your ability to handle different financial obligations and increases their confidence in your creditworthiness.
