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Ludmilka [50]
2 years ago
8

Lenders look at the credit score of a loan applicant in order to _____.

English
2 answers:
Katarina [22]2 years ago
6 0

Answer:

b. ensure that the applicant is financially responsible

Explanation:

A loan can be defined as an amount of money that is being borrowed from a lender and it is expected to be paid back at an agreed date with interest.

Generally, the financial institution such as a bank lending out the sum of money usually requires that borrower provides a collateral which would be taken over in the event that the borrower defaults (fails) in the repayment of the loan.

A credit score can be defined as a numerical expression between 300 - 850 that represents an individual's financial history and credit worthiness. Therefore, a credit score determines the ability of a borrower to obtain a loan from a lender.

This ultimately implies that, the higher your credit score, the higher and better it is to obtain a loan from a potential lender. A credit score ranging from 670 to 739 is considered to be a good credit score while a credit score of 740 to 799 is better and a credit score of 800 to 850 is considered to be excellent.

Hence, lenders look at the credit score of a loan applicant in order to ensure that the applicant is financially responsible and would be able to repay the loan at the agreed upon date.

Serhud [2]2 years ago
5 0

Answer:

B

Explanation:

You have to be able to prove responsibility with your own money.

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