Do you think a senior citizen with a not so good credit and only a monthly Social Security income could get auto financing?
Credit is a monetary facility which is furnished by private lenders, banks, and other financial institutions. Credit enabled borrowers to acquire commodities like a car, machine. This facility is based upon the trustworthiness of the person.
Answer and Explanation:
No, a senior citizen who is bad with credit and surviving only through social security income is not eligible to get an auto loan. Because at the time of creditworthiness examination by the credit manager, adverse credit history can cause a problem in lending the amount as well as there is no good source of income which can be used a positive sign to get a loan. Company will also require collateral security to issue a credit.
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from Corporate Finance: Help & ReviewChapter 8 / Lesson 7