Before giving a loan to a customer, a lender examines the customer’s credit report. Which explains why the lender examines the customer’s credit report?

A credit report shows a person’s history of borrowing and repaying debt, such as whether payments were made on time. The lender uses this information to judge how likely the customer is to repay the new loan, so the correct choice is “to determine if the customer is likely to pay back the loan.”

AI-written and checked against the verified answer.