Question

1. a teen with no credit history wants a loan to buy a used car. the bank is worried he may not repay. which option is most likely to make the bank approve the loan?

using a balance transfer
requesting a cash advance
switching to a variable interest rate
adding a cosigner with strong credit

1. jordan used 85% of her available credit limit this month. even though she plans to pay it off, how might this affect her credit score?

it improves her score because she is using credit actively
it lowers her score because her credit utilization (amount used) is high
it has no effect unless she misses a payment
it lowers her score only if she switches lenders

Explanation:

For question 3: A cosigner with strong credit reduces the bank’s risk by guaranteeing repayment if the teen defaults, making approval more likely.
For question 4: Credit utilization (ratio of used to available credit) is a key factor in credit scores; high utilization (like 85%) typically lowers scores even if payments are on time.

Answer:

1. Adding a cosigner with strong credit
2. It lowers her score because her credit utilization (amount used) is high