Better understanding a loan MS 8 ocs 12th

What should Lucy do if she has a bad credit score but wants to benefit from excellent credit?

• Increase her income

• Find a co-signer with great credit

• Apply for a payday loan

• Wait until her credit score improves

If Lucy can't find a co-signer, what type of loan might she get?

• Prime loan with low interest

• No loan at all

• A loan from friends and family

• Subprime loan with higher interest

What is the benefit of shopping around for a loan within 14 days?

• It helps you get a loan without any credit check

• It ensures a low fixed APR without hurting your credit score

• It guarantees the lowest interest rate

• It allows you to avoid all fees

What should you avoid in a loan to prevent major expenses in the long run?

• Monthly payments

• Fixed interest rate

• Pre-computed or add-on interest

• Short-term loan

When should you consider refinancing your loan?

• When your credit score improves

• When you need more money

• When interest rates have significantly dropped

• When you want to extend the loan term