Final answer:
A bank considers the borrower's ability to repay the loan before lending money, borrowers should ask about interest rates and fees when shopping for a loan, and a good credit score is achieved by making payments on time and maintaining a healthy credit history.
Step-by-step explanation:
Guiding Questions:
What must a bank consider before it decides to lend money? Before lending money, a bank needs to assess the borrower's ability to repay the loan. This involves reviewing the borrower's income sources, conducting a credit check, and possibly requiring collateral or a cosigner.
What types of questions should a borrower ask when shopping for a loan? Borrowers should inquire about the interest rate, repayment terms, any fees associated with the loan, and whether there are any penalties for early repayment.
How does a person get and maintain a good credit score? A good credit score is obtained by consistently making payments on time, keeping credit utilization low, and maintaining a healthy credit history.