Question

Alex is applying for a new line of credit, and the bank’s lending officer has opened Alex’s credit history. According to the report, Alex has a loan on his car. He has three credit cards, each with thousands of dollars owed. In addition to his higher-than-average debt, Alex has not been making payments on time in recent months. His last two car payments were late, and he has missed a few of his credit card payments completely.

Given Alex’s credit history, consider how the bank will likely view him.

The bank is likely to consider Alex a
borrower.

As a result of his financial situation, Alex likely has a(n)
credit score.

If he is granted the loan, his interest rate will most likely be
than what others pay.

Answer 1

The bank is likely to consider Alex a high‑risk (risky) borrower.

As a result of his financial situation, Alex likely has a low (poor) credit score.

If he is granted the loan, his interest rate will most likely be higher than what others pay.