It predicts future earning potential for lenders best describes the role of a credit agency. This answer has been confirmed as correct and helpful. There are no new answers. Statement that best describes the role of a credit agency is: It tracks the use of credit for lenders.

Which statement best describes the role of a credit agency it tracks the use of credit for lenders it predicts future earning potential for lenders it teaches how do you make smart financial decisions?

Answer Expert Verified The answer is “It predicts future earning potential for lenders”. A credit agency is revenue driven organization that gathers data about people’s and organizations’ debts and doles out a numerical esteem called a credit score that demonstrates the borrower’s financial soundness.

Which statement best describes the lender’s viewpoint of William?

Which statement best describes the lender’s viewpoint of William? He is a low-risk borrower who qualifies for lower interest rates.

What does the value of collateral or down payment affect?

Basically, loans secured by collateral incur lower interest rates that unsecured loans. You credit score will also say a lot about you in terms of the amount borrowed and repaid money. Lower interest rates are offered to borrowers with huge down payments.

Which is best describes the relationship between credit scores and credit riskiness?

Which of the following statements best describes the relationship between credit scores and credit riskiness of borrowers? a. Higher credit scores are associated with higher credit risk. b. Higher credit scores are associated with lower credit risk. c. Lower credit scores are associated with lower credit risk.

Which is the standard model for developing credit scores?

The FICO® score has been the standard model for developing credit scores for many years, however new credit scoring models are being developed. In relation to this, which of the following statements is true?

Which is not a financial decision made within a firm?

Accounting records past activities of a firm while finance helps with decisions regarding the firm’s future Which one of these is NOT a financial decision made within a firm? The president decides to fire the company treasurer for ethical violations Which one of these is an advantage of the corporate form of ownership? Separate legal entity

What makes a person have a good credit score?

The same good credit behaviors, such as on-time payments and low debt to credit ratios, will lead to good credit scores regardless of the scoring model. d. 9. Which of the following credit inputs is the least important when a FICO score is developed?