5
QuizMultiple Choice

Money and Credit Management — Test

Question 5 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT

Kendrick is planning to buy a house. Which explains why he should establish a positive credit history before buying the house?

Answer
A
He will be able to get a higher interest rate when buying the house.
B
It will be easier for him to get a loan to buy the house.
C
He will get the house for a lower price.
D
He will be able to find a house he likes more quickly.

Explanation

A positive credit history shows lenders that Kendrick has managed borrowed money responsibly. This can make it easier for him to qualify for a mortgage to buy the house. It may also help him get a lower interest rate, not a higher one, but it does not directly lower the house’s price or help him find a house faster.

AI-written and checked against the verified answer.

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