Question

A lender looks at factors to decide whether an individual should be approved for a loan. Which of the following is not a true statement?
Alender looks at an applicant's capital
A lender looks at collateral for the loan.
A lender looks at an applicant's credit report.
An applicant must have a credit score higher than 900 to be approved for a loan.

Answer 1

Answer:

An applicant must have a credit score higher than 900 to be approved for a loan.

Explanation:

If all other factors are in the applicant's favor, then having an average credit score won't affect their acceptance for a loan.

A perfect 850 credit score is not necessary for most people to have when it comes to approval for personal loans or credit cards.