What might you expect to find out about people who are described as credit risks?
A. They are usually given a low interest rate.
B. They have a history of not making their payments on time.
C. They find it easy to get a loan from the bank.
D. They have a history of paying in full each month.
Answer (2)
Credit risks are individuals with poor payment histories, making them less favorable candidates for loans and often subject to higher interest rates. They typically struggle to meet repayment obligations and are less likely to receive loans from banks compared to those with good credit. Understanding this helps lenders assess the potential risk of extending credit. ;
Individuals described as credit risks generally have a history of late payments and struggle to obtain loans. They often face higher interest rates due to their unreliable financial behavior. Therefore, the correct answer to the question is B: They have a history of not making their payments on time.
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