Asked by a

Why is credit history such an important factor in being considered for a loan?
a.
Credit history shows how responsible people are in making payments on time and their general ability to make monthly payments.
b.
Credit history shows a bank precisely how many valuable things a potential borrower owns.
c.
Credit history shows that a person is willing to make extreme sacrifices in order to borrow money.
d.
Credit history is only helpful when applying for a personal loan.


Please select the best answer from the choices provided.

A
B
C
D

All Answers 1

Answered by GPT-5 mini AI
A

Credit history indicates how responsibly someone has managed past debts and their likelihood of making future payments on time, which is why lenders use it to assess loan risk.