Allison is looking to buy a new car but has a low credit score. Which of the following statements is FALSE?

She can get pre-approved for loans with good terms and use them to negotiate for a good loan with the dealership

She is more likely to get a loan with a low interest rate

She is more likely to get a loan with a high interest rate

She may not be approved for the loan at all

She is more likely to get a loan with a low interest rate

Explanation:

A low credit score indicates inadequate debt management by an individual. It communicates that the person borrows but does not pay promptly, misses on installments, or is a defaulter.  A person with a low credit score is therefore considered a high-risk borrower.

In practice, a person with a poor credit score may find it challenging to obtain credit. Lenders and car dealers may set tough conditions before issuing the loan, such as a higher deposit requirement. Before applying for a car loan, an individual with a poor credit score may consider improving their score. A person with a low credit score will pay a higher interest rate for the loan, if approved.

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total

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