All of the following statements are true, except: individuals without credit reports should always first apply to mainstream lenders. reliance on credit reports and credit scores often differentiates mainstream and alternative financial service providers. a personal bank loan requires that an application be completed. there is a relatively small difference in the total finance charge between mainstream and alternative financial service providers.

Question

Business

Elsa Jarvis

19 April, 00:47

All of the following statements are true, except: individuals without credit reports should always first apply to mainstream lenders. reliance on credit reports and credit scores often differentiates mainstream and alternative financial service providers. a personal bank loan requires that an application be completed. there is a relatively small difference in the total finance charge between mainstream and alternative financial service providers.

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Answers (1)

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Guillermo Butler · Answer 1

The answer is: There is a relatively small difference in the total finance charge between mainstream and alternative financial service providers.

Explanation:

Alternative financial services include pawnshops, check cashers, payday lenders, auto title lenders and rent to own shops. All of these alternatives charge very high interest rates, for example payday lenders charge on average at least 400% APR, while pawn shops or auto title lenders can charge up to 300% APR.