The assistance given by a credit report to borrower qualification is primarily to:
A) verify the applicant's place of residence
B) show the applicant's payment record to other creditors
C) confirm employment and banking relations
D) disclose any liens against applicant's property

Question

Quizplus · Accepted Answer

A credit report shows the applicant's payment record to other creditors, which is a key factor in determining their creditworthiness and ability to repay a loan. It also includes information on current and past credit accounts, any outstanding debts, and public records such as bankruptcies or foreclosures. While the report may include some information on the applicant's residence, employment, and banking relations, these factors are not the primary focus of the credit report in terms of borrower qualification. Liens against an applicant's property may be included in the report, but again, this is not the primary purpose of the credit report in terms of borrower qualification.

The Assistance Given by a Credit Report to Borrower Qualification