Question 16 • TX-Personal Financial Literacy and Economics
What are the advantages of following a strict repayment schedule? Check all that apply.It eliminates the need for secured credit.It prevents additional fees from being charged.It guarantees the borrower possible new loans.It prevents some interest rate increases.It shows that the borrower is responsible.
Answer
A
It eliminates the need for secured credit.
B
It prevents additional fees from being charged.
C
It guarantees the borrower possible new loans.
D
It prevents some interest rate increases.
E
It shows that the borrower is responsible.
Explanation
Making payments on time can help avoid late fees and may prevent penalty interest rate increases. A consistent repayment record also shows lenders that the borrower is responsible. It does not eliminate the need for secured credit or guarantee approval for new loans.
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