Question

which of the following are more likely to happen if you have bad credit? check all that apply.
□ being denied a mortgage
□ being denied an unsecured credit card
□ having to pay higher interest rates on loans
□ getting a great interest rate on a car loan
□ having a strategy for dealing with a financial emergency

Explanation:

• being denied a mortgage: Lenders assess creditworthiness for mortgages. Bad credit means higher risk, so denial is likely.
• being denied an unsecured credit card: Unsecured credit cards rely on credit history. Bad credit makes approval hard as there's no collateral.
• having to pay higher interest rates on loans: Lenders charge more for higher - risk borrowers (those with bad credit) to offset potential losses.
• getting a great interest rate on a car loan: Great interest rates are for good - credit borrowers. Bad credit means higher rates, so this is unlikely.
• having a strategy for dealing with a financial emergency: Bad credit doesn't directly relate to having a financial emergency strategy; it's about financial planning, not credit status.

Answer:

• being denied a mortgage
• being denied an unsecured credit card
• having to pay higher interest rates on loans