Of the following statements, which one or ones indicate possible effects of a low credit score? i. you will have a difficult time qualifying for loans. ii. any loans you take out will be relatively short-term. iii. you will have to pay higher than average interest rates. a. i only b. i and ii c. iii only d. i and iii

When you have a low credit score there are many things that can effect your loan agreements. Typically you will have a difficult time qualifying for loans. Due to your low credit score, it shows that you have issues paying for the items you have which makes it hard for other lenders to want to give you loans because they could lose out. You also normally pay higher than average interest rates. When you have bad credit and do not pay items back properly lenders who do approve you for a loan will often provide you with a high interest rate because they are afraid they may lose big time if you stop paying. You are a risk for lenders to go ahead with the loan so they try to cover themselves in the event it happens.

D. I and III

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