Question

of the following statements, which one or ones indicate possible effects of a low credit score?
i. you will have a difficult time qualifying for loans.
ii. any loans you take out will be relatively short-term.
iii. you will have to pay higher than average interest rates.
a. i only
b. i and ii
c. iii only
d. i and iii

Explanation:

• For Statement I: A low credit score means lenders see higher risk, so qualifying for loans is hard.
• For Statement II: Loan term (short - term or long - term) isn't directly determined by credit score; it's more about loan type/agreement, so II is incorrect.
• For Statement III: Lenders charge higher interest to compensate for the risk of a low - credit - score borrower, so III is correct. Thus, I and III are correct.

Answer:

d. I and III