Question

Of the following statements, which one or ones indicate possible effects of a low credit score?

I. You will have a difficult time qualifying for loans.
II. Any loans you take out will be relatively short-term.
III. You will have to pay higher than average interest rates.
a.
I only
b.
I and II
c.
III only
d.
I and III

Answer 1

d. I and III

Explanation: A low credit score makes lenders view you as higher risk, so you may have trouble qualifying for loans (I) and, if approved, you’ll typically face higher interest rates (III). It does not necessarily mean any loans you get will be relatively short-term (II).