Question

Why is credit history such an important factor in being considered for a loan? a. Credit history shows how responsible people are in making payments on time and their general ability to make monthly payments. b. Credit history shows a bank precisely how many valuable things a potential borrower owns. c. Credit history shows that a person is willing to make extreme sacrifices in order to borrow money. d. Credit history is only helpful when applying for a personal loan.

Answer 1

The answer is A. Credit history shows how responsible people are in making payments on time and their general ability to make monthly payments

Explanation:

Answer 2

Option A is the correct answer.

Explanation:

The credit history of a person is an important factor, that banks consider while giving loan to that person. Credit history reveals a person's financial history, if he has defaulted out any payment or he has a good credit score etc. If all is good as per the bank, then he will be granted loan. This history tells if a person is reliable or not.

So, the correct answer is option A.

Credit history shows how responsible people are in making payments on time and their general ability to make monthly payments.