Which of the following is not use to asses whether credit should be extended to a household?
A) The amount of income earned.
B) The amount of debt outstanding.
C) The history of timely repayments of debt owed.
D) Whether the loan is secured by an asset.
E) All of the above are used to asses credit.

Question

Quizplus · Accepted Answer

All of the above factors are typically used to assess creditworthiness of a household. Income is important because it indicates the ability to repay debt, debt outstanding is important because too much debt can indicate a high risk of default, the history of timely repayments shows a pattern of responsible credit management, and whether a loan is secured by an asset provides collateral in case of default. Therefore, E is the correct answer as it is the only option that states all the factors mentioned in the question.

Which of the Following Is Not Use to Asses Whether