Finance companies charge different rates than do commercial banks which

Question

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Finance companies are often willing to lend to borrowers who may be considered too risky for commercial banks. As a result, they charge higher interest rates to offset this risk. Some finance companies may be classified as subprime lenders because they offer loans to borrowers with poor credit histories. Finance companies must also meet state usury law guidelines, which limit the maximum interest rate that can be charged on a loan. Therefore, all options apply.

Finance Companies Charge Different Rates Than Do Commercial Banks Which