Maria Ivanov has owned a successful clothing boutique chain for 20 years. She has gone into debt several times to expand her business. Each time, she paid off the debt in full sooner than expected. Use the scenario to answer the question. How will Maria’s record affect the loans she is offered?

Question

A. She will be offered longer terms.
B. She will be offered shorter terms.
C. She will be offered lower interest rates.
D. She will be offered higher interest rates.

Answer 1

C. She will be offered lower interest rates.

Maria's record of paying off her debts sooner than expected demonstrates her reliability and financial responsibility. Lenders are likely to view her as a low-risk borrower and offer her lower interest rates as a result.