Question

which element is often required if the primary borrower has a limited credit history or a lower credit score? a cosigner a principal an origination fee a prepayment privilege

Explanation:

To determine the answer, we analyze each option:

• A cosigner is a person who agrees to take on the responsibility of repaying a loan if the primary borrower fails to do so. Lenders often require a cosigner when the primary borrower has a limited credit history or a lower credit score, as the cosigner's good credit can help secure the loan.
• A principal refers to the original amount of money borrowed (or invested), not something required due to a borrower's credit situation.
• An origination fee is a fee charged by a lender to process a new loan application, unrelated to a borrower's credit history/score.
• A prepayment privilege allows a borrower to pay off part or all of a loan early, which has nothing to do with a borrower's credit profile.

Answer:

a cosigner