5
QuizMultiple Choice

Personal Savings and Consumer Credit: Part Three — Test

Question 5 • Advanced Financial Algebra

Which element is often required if the primary borrower has a limited credit history or a lower credit score?

Answer
A
a prepayment privilege
B
a cosigner
C
an origination fee
D
a principal

Explanation

A cosigner may be required when the primary borrower has limited credit history or a lower credit score. The cosigner agrees to repay the loan if the primary borrower does not, giving the lender added assurance. The correct choice is a cosigner.

AI-written and checked against the verified answer.

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