Question

Trying to get a loan from a bank is time consuming and invades the privacy of your personal credit history; thus, you'd be better off using alternative credit arrangements such as refund anticipation loans, payday loans, or rent-to-own services.

Answer 1

The options for the question are:

True

False

And the answer is:

False

Step-by-step explanation:

Options outside of banking institutions tend to be attractive because they usually do not require a scan of the borrower's credit history, however, they are also riskier options because they frequently charge higher interest rates.

It's always best to go to a trustworthy financial institution when in need for a loan, even it a credit history study is required. This actually should be seen as positive because both the bank and the borrower make sure that the credit is not too risky before approving it.