15
QuizMultiple Choice

Credit and Types of Loans — Test

Question 15 • Financial Math

Which element is often required if the primary borrower has a limited credit history or a lower credit score?

Answer
A
an origination fee
B
a principal
C
a prepayment privilege
D
a cosigner

Explanation

A cosigner may be required when the primary borrower has limited credit history or a lower credit score. The cosigner agrees to repay the loan if the primary borrower does not, giving the lender added assurance. The correct choice is a cosigner.

AI-written and checked against the verified answer.

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