What might you expect to find out about people who are described as credit risks?
Understand the Problem
The question is asking about the characteristics or behaviors of individuals who are considered credit risks. This involves understanding their payment history and how it affects their financial dealings, particularly in relation to loans and interest rates.
Answer
They are likely to have a history of late payments or defaults.
People described as credit risks are likely to have a history of late payments or defaults, indicating they may not meet contractual obligations.
Answer for screen readers
People described as credit risks are likely to have a history of late payments or defaults, indicating they may not meet contractual obligations.
More Information
Credit risks are often assessed by financial institutions when considering a loan. A poor payment history can negatively affect a person's credit score, leading to higher interest rates or denial of credit.
Tips
A common mistake is assuming all credit risks are due to bankruptcies, while many are simply due to past late payments.
Sources
- Credit Risk: Definition, Role of Ratings, and Examples - Investopedia - investopedia.com
- What might you expect to find out about people who are ... - Gauth - gauthmath.com
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