What best explains the relationship between a borrower's credit score and a down payment requirement?

O

0

Someone with a high credit score may be required to make a higher down payment.

Someone with a high credit score may be required to make a lower down payment.

Someone with a low credit score may be required to make a lower down payment.

Someone with a low credit score may not have to make a down payment.

Question

Business

Reynolds

31 August, 03:47

What best explains the relationship between a borrower's credit score and a down payment requirement?

O

0

Someone with a high credit score may be required to make a higher down payment.

Someone with a high credit score may be required to make a lower down payment.

Someone with a low credit score may be required to make a lower down payment.

Someone with a low credit score may not have to make a down payment.

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Answers (1)

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Genesis · Answer 1

Someone with a high credit score may be required to make a lower down payment.

Explanation:

A high credit score arises when a customer has a history was repaying his debts promptly. The customer does not default on payments. Someone with a high credit is considered a low-risk borrower by lenders.

Someone with a high credit score is less likely to default on repayment. Lenders or banks will not demand large deposits from customers with a high credit score as they pose low risks to the bank. Their probability of repaying the loan on time is high.