Question

15 information in a credit report can be used to determine if an individual has to pay a deposit for utility services.

true
false

Explanation:

Analyze credit report purposes

A credit report contains a detailed history of an individual's borrowing and repayment activities. While primarily used by lenders to evaluate creditworthiness for loans and credit cards, other service providers also access this information.

Evaluate utility company practices

Utility companies (such as electricity, water, gas, and telecommunications providers) frequently review a new customer's credit history. They use this information to assess the risk of late payments or defaults.

Determine deposit requirements

If an individual has a poor credit history or a low credit score, the utility company may require a security deposit before establishing service. Conversely, a strong credit history often allows the customer to waive this deposit. Therefore, the statement is true.

Answer:

• True (Correct answer)
• False