Question

(03.02 hc)
jim and jennifer have excellent credit, and they purchased property with a mortgage. soon, they experienced financial difficulty and were late on one payment. however, all subsequent payments have been on time. which of the following is the most probable consequence of jim and jennifer’s late payment?

○ the bank will repossess the property.

○ their credit score will go down a few points.

○ the bank will request wage garnishment.

○ the credit report administration will cancel their credit.

Explanation:

A single late payment (even if subsequent payments are on - time) typically has a negative impact on the credit score. Repossession (bank taking property) usually occurs after multiple consecutive late payments or a long - term default. Wage garnishment is a more extreme measure that is not likely for a single late payment. Credit cancellation is also an extreme step not typically taken for one late payment.

Answer:

Their credit score will go down a few points.