Question

Dylan has a good credit score and is planning to apply for a loan. What could negatively affect Dylan’s credit score?

A.
missing a loan payment
B.
not making a down payment
C.
providing collateral
D.
using a cosigner

Answer 1

A. missing a loan payment

Explanation:

Whenever someone wish to apply a loan, lenders would consider his/her credit scores when analyzing the application. A good credit score would increase his/her chance to be qualified for the loan. The higher the score qualifies you for a fair interest rates, and also it would reduce the perceived risk.

Considering the question, missing a loan payment would definitely affect his credit score negatively. It would affect the interest rate, loan terms and credit limit.

Answer 2

the right answer is a)missing a loan payment

Explanation:

because if you are missing a loan payment, you would have a negative report at the risk centers