Question

lesley is applying for a car loan. the loan company runs her credit report. according to the report, she already has one car loan. she has four credit cards, and all have reached their limit. she also has a student loan that she used to pay for college. in addition to her high debt, lesley has had multiple late and missed payments on all of her credit cards and loans. if the loan company does approve lesleys loan, what provision is likely to be part of the loan agreement? lesley will have to meet with a financial adviser. lesley will be required to submit a monthly credit report. lesley will have to pay a higher interest rate. lesley will default on the loan after one late payment.

Explanation:

Lesley has high debt, maxed-out credit cards, and a history of late/missed payments, making her a high-risk borrower. Lenders typically charge higher interest rates to compensate for the increased risk of default from such borrowers. The other options are less standard: meeting a financial adviser or monthly credit reports are not typical loan provisions for this scenario, and default after one late payment is overly strict.

Answer:

Lesley will have to pay a higher interest rate.