Question

Larry went to Great Buy Furniture to take advantage of a nine-month zero finance deal on a living room set. All he had to do was complete a quick questionnaire on a computer to get a credit determination. Who makes the credit decision?

A) Larry
B) Great Buy Furniture
C) Credit reporting agencies
D) Credit issuer associated with the deal

Answer 1

The credit decision for Larry's purchase is made by the credit issuer associated with the deal. They will review his financial information, including income and credit history, when making their decision.

Step-by-step explanation:

The credit decision for Larry's furniture purchase at Great Buy Furniture is made by the credit issuer associated with the deal. Larry, as the consumer, simply applies for credit. Great Buy Furniture offers the financing deal, but the actual credit check and decision process is handled by an external credit issuer or financial institution that has a partnership with the store. This credit issuer will review Larry's income sources, credit history, and other financial information. The decision is based on factual information such as past borrowing behavior, and does not consider non-financial personal attributes such as race, gender, or religion. If Larry has had past financial mistakes, they won't haunt him indefinitely, though they may impact the current decision depending on their severity and recency.