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Nadya [2.5K]
3 years ago
10

This was Leonard's first credit purchase after he graduated from college. He would now like to purchase a used car. Why would Le

onard most likely qualify for a car loan?​
Social Studies
1 answer:
ANEK [815]3 years ago
5 0

Answer:Here, James took the right decision. I will clarify this with few points.

1st - If he purchases a car at high interest rate, he will still have all his debt on previous credit card standing as it is. He will have to pay car loan plus his older dues thus paying at double places.

2nd - It is likely that he can still default on loans as paying double money each month can create problems and James can again stop making payments.

3rd - If James starts paying his debts now, he can be free in a few years time and his credit score will again become good. Then he will get the regular rate of interest for his car as he will be debt free.

So, we can say, he made the right decision.

Explanation:

Hope this helped Baka

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