9
QuizMultiple Choice

How Credit Works — Quiz

Question 9 • Personal Finance

What are the advantages of a strict repayment schedule? Choose three correct answers.

Answer
A
It eliminates the need for secured credit.
B
It shows that the borrower is responsible.
C
It guarantees the borrower possible new loans.
D
It prevents additional fees from being charged.
E
It prevents some interest rate increases.

Explanation

Making payments on time shows lenders that the borrower is responsible. It also helps avoid late-payment fees and may prevent interest rate increases that can result from missed payments. A strict schedule does not eliminate the need for secured credit or guarantee that a borrower will receive new loans.

AI-written and checked against the verified answer.

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