Question

When lenders look at collateral, they are looking to see if an individual _____.

has been responsible in the past with credit
has a positive net worth
has the ability to make payments based on the amount of income and bills
has property that they can promise to give to the lender if a loan is not paid

Answer 1

has property that they can promise to give to the lender if a loan is not paid.

Answer 2

Answer: has property that they can promise to give to the lender if a loan is not paid

Explanation:

Collateral is known to be an asset which is a form of security or protection for a loan which a borrower promises to give to a lender. Hence, the lender takes over the property or asset and sells it in order to recover the amount of the loan if the borrower fails to repay the loan.