2
QuizMultiple Choice

Financial Responsibility

Question 2 • Personal Finance - EL3403

Which is a long-term consequence of making late payments on your bills?

Answer
A
It will be harder to secure a new loan at a low rate.
B
The balance in your checking account will be negative.
C
There will be a late fee.
D
The number of payments will increase.

Explanation

Late payments can lower your credit score and remain on your credit history, making lenders view you as a higher risk. As a result, it may be harder to qualify for a new loan at a low interest rate. A late fee and a negative checking balance are possible short-term effects, not the long-term consequence asked about.

AI-written and checked against the verified answer.

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