Question

jerry and darren both applied for a loan to purchase a car. jerry had never been in debt before as he always makes his purchases in cash. darren, on the other hand, used debt quite frequently to take advantage of promotions such as 0% financing. darren handled his debt responsibly and always made his payments by the due date. the lending institution denied jerrys loan application and offered darren a loan. mcm.3.3 based on the text, which is a main advantage of debt? it enables an individual to purchase goods without interest it enables an individual to establish a credit history. it lowers the price of the goods being purchased it allows for unlimited personal consumption

Explanation:

Jerry had no debt history (cash purchases) so no credit record, leading to loan denial. Darren used debt responsibly, building a credit history that secured his loan. The text shows responsible debt helps establish credit history, which is key for loan approval. Other options: 0% financing is a promotion (not main advantage), no mention of lower prices or unlimited consumption.

Answer:

It enables an individual to establish a credit history.