Question

Which statement best describes how lenders determine borrowing conditions for a customer?

They access the customer’s credit reports.
They see how large of a down payment the customer makes.
They look into how much the customer has saved for emergencies.
They access the customer’s work history.

Answer 1

They access the customer’s credit reports.

Lenders use credit reports/credit scores to assess repayment risk and set interest rates, loan amounts, and other borrowing conditions (though they may also consider down payment, savings, and employment).