Question

Which details apply to a financing contract? Check all that apply.

requires a credit check
are always less expensive than using a credit card
includes interest rate information
requires a signature for rent-to-own agreements
can be broken at any time

Answer 1

Check these three:

- requires a credit check — Yes (most lenders run a credit check before approving financing, though some seller-financing or “buy now, pay later” plans may not).
- includes interest rate information — Yes (financing contracts spell out the APR/interest and repayment terms).
- requires a signature for rent-to-own agreements — Yes (rent-to-own is a contractual arrangement and normally requires a signed agreement).

Do NOT check:
- are always less expensive than using a credit card — False (cost depends on the specific loan or card).
- can be broken at any time — False (contracts are binding; breaking them usually has penalties or legal consequences).