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8. Jessica just graduated college. She has student loan debt but has not yet made any payments. She wants to start her own business, so she applied for a loan from her local bank. The bank said that she does not qualify because she has no credit history. Tell three things can Jessica do to build her credit history. _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ 9. Which of the following types of loans will have the highest interest rate? a. auto finance loan b. payday loan c. home loan d. student loan 10. In peer-to-peer lending , the creditors are _____. a. banks b. government c. individuals d. online companies 11. Which of the following is NOT a wealth-building use of debt: a. buying a home b. obtaining an education c. financing the start of a business d. purchasing consumer goods 12. T F When people have easy access to credit, they are often tempted to spend money on things they do not need. 13. James’ student loan payment was due on June 1. He was very busy at work and forgot to make the payment. It is now June 2. His loan is now: a. in forfeiture b. in default c. in deferment d. delinquent PRODUCT PREVIEW
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Chapter 7 | The Credit Conundrum 132
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