How does a low credit score affect a person who applies for a loan?
A. It makes it easier for the person to get a loan with a poor debt-to-income ratio.
B. It makes banks more likely to give the person a large, long-term loan.
C. It causes banks to charge the person higher interest rates on the loan.
D. It allows banks to give the person a loan without checking his or her tax records.
Answer (1)
A low credit score leads to higher interest rates, difficulty in loan approvals, and potentially limited loan amounts. These factors reflect the increased risk perceived by lenders. Consequently, borrowers with low credit scores often face more substantial financial challenges. ;
