5
QuizMultiple Choice

Understanding Credit — Quiz

Question 5 • Personal Finance

Pete is trying to get a loan. He has a credit score of 480. How is Pete’s lender likely to view this credit score?

Answer
A
Pete is responsible but will not pay the loan back on time.
B
Pete is irresponsible and will not pay the loan back on time.
C
Pete is irresponsible but will pay the loan back on time.
D
Pete is responsible and will pay the loan back on time.

Explanation

A credit score of 480 is considered very low. Lenders generally view a low score as a sign of higher risk, suggesting Pete may have difficulty repaying the loan on time. Therefore, the best choice is “Pete is irresponsible and will not pay the loan back on time.”

AI-written and checked against the verified answer.

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