Maria Ivanov has owned a successful clothing boutique chain for 20 years. She has gone into debt several times to expand her business. Each time, she paid off the debt in full sooner than expected.

Question

Maria Ivanov has owned a successful clothing boutique chain for 20 years. She has gone into debt several times to expand her business. Each time, she paid off the debt in full sooner than expected.

Question
Use the scenario to answer the question.
How will Maria’s record affect the loans she is offered?
(1 point)
Responses

She will be offered longer terms.
She will be offered longer terms.

She will be offered shorter terms.
She will be offered shorter terms.

She will be offered lower interest rates.
She will be offered lower interest rates.

She will be offered higher interest rates.
She will be offered higher interest rates.

Answer 1

Maria's record of paying off her debts in full sooner than expected will likely result in her being offered lower interest rates on future loans. Lenders will see her as a low risk borrower who is likely to repay the loan in a timely manner, which will make her a more attractive candidate for lower interest rates.