6-15 Bad debt expense and administrative costs are lower on home equity loans than other typical loans of finance companies.

Name: 6-15 Bad debt expense and administrative costs are lower on home equity loans than other typical loans of finance companies.
Brand: Quizplus
Rating: 4.8 (68 reviews)

Question

Quizplus · Accepted Answer

Home equity loans are considered secured loans because they are backed by the borrower's equity in their home, which reduces the risk of default and therefore results in lower bad debt expenses and administrative costs for the finance company.

6-15 Bad Debt Expense and Administrative Costs Are Lower on Home