130k views
3 votes
What best explains the relationship between a borrower’s credit score and a down payment requirement?

A.Someone with a high credit score may be required to make a higher down payment.
B.Someone with a high credit score may be required to make a lower down payment.
C.Someone with a low credit score may be required to make a lower down payment.
D.Someone with a low credit score may not have to make a down payment.

User Brigadeiro
by
7.4k points

2 Answers

5 votes

Answer:

B.Someone with a high credit score may be required to make a lower down payment.

Step-by-step explanation:

A down payment is an initial payment that is made when you are buying things like real state or a car and the rest of the payment is made with a loan. So, when people ask for a loan to the bank, the amount approved and the initial payment are affected by the credit score the person has. If the person has a high credit score, he/she can get a higher loan which will require a lower down payment but if the person has a low score, then that person will get a lower amount and will require a higher down payment so the bank will be willing to lend the money. According to this, the sentence that best explains the relationship between a borrower’s credit score and a down payment requirement is someone with a high credit score may be required to make a lower down payment.

User Manish Patiyal
by
8.2k points
5 votes
the one that best explains the relationships between borrower's credit score and a down payment requirement is :
B. Someone with a high credit score may be required to make a lower down payment
Someone with high credit score usually correlated with Economic stability

hope this helps
User Bela Vizy
by
7.9k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories