Question

Pete is trying to get a loan. He has a credit score of 480. How is Pete’s lender likely to view this credit score? Pete is responsible and will pay the loan back on time. Pete is responsible but will not pay the loan back on time. Pete is irresponsible but will pay the loan back on time. Pete is irresponsible and will not pay the loan back on time.

Answer 1

Answer:

Pete is irresponsible and will not pay the loan back on time.

Explanation:

Borrowers can be classified into four groups depending on their credit scores.  Credit score range from 300 to 850

Scores between 300 to 629: Bad

From        630 to 689: Fair

From        690 to 719: Good

From       720 t0 850 : Excellent

Pete is in the lower band of credit score. His credit score is very low. It could be a result of bad history in debt repayment. For this reason, lenders will assess him as a high-risk customer.  Pete is poor at managing debts and is likely to default on future loans.

Answer 2

Answer:

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