Derek's Credit Report
Furniture City
Brooklyn, NY
Balance: $578
Date Open: 12/01/2011
Account Type: Installment
High Balance: $2500
Terms: $115 for 24 months
Pay Status: Late over 60 days
Date Closed: 8/30/2012 by Company
bols
Why would Derek be denied credit for a new car?
A)
He lives in Brooklyn, New York.
He still owes a balance for his furniture,
His payments are too high to afford a car payment.
He has been late on payments and had account closed.

People need to satisfy their needs and wants for which they earn money. But at times when their income falls short of meeting the needs and the wants, they might take credit from organised sector which includes bank or the unorganized sector.

But there are some terms and conditions on which the organised sector like banks give loans to the people. The bank can reject the application of loan to a person if he has not paid his previous loan or he got his account closed without making previous payment full.