D: A positive credit history will mean a lower interest rate.
Having a positive credit history shows that an individual has a history of repaying debts on time and managing credit responsibly. Lenders view individuals with good credit as lower risk borrowers, so they are more likely to offer them lower interest rates on loans. In contrast, individuals with a negative credit history are seen as higher risk borrowers, so they may be offered higher interest rates on loans.
Explain the effect of credit history on the terms of a loan.(1 point) Responses
A: positive credit history will mean a higher interest rate.
B: A negative credit history will mean a lower interest rate.
C: More information is needed.
D: A positive credit history will mean a lower interest rate.
1 answer
1 answer