12
QuizMultiple Choice

Understanding Credit

Question 12 • Personal Finance - EL3403

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

Explanation

A positive credit history shows lenders that Kendrick has handled borrowing responsibly. This can make it easier for him to qualify for a mortgage, or home loan, so the correct choice is “It will be easier for him to get a loan to buy the house.”

AI-written and checked against the verified answer.

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