Asked by Jason Harris on Jul 03, 2024
Verified
Finance companies install measures in their agreements that help insure that they will not be immediately replaced by banks when a borrower's credit profile improves.
Credit Profile
A summary or analysis of an individual's or entity's credit history and current financial status used by lenders to gauge creditworthiness.
- Familiarize yourself with the responsibilities and terms associated with banks, financing companies, and other capital providers in the allocation of funds.
Verified Answer
ZK
Zybrea KnightJul 04, 2024
Final Answer :
True
Explanation :
Finance companies may install clauses such as prepayment penalties or hard credit check requirements in their agreements to discourage borrowers from switching to banks once their credit improves.
Learning Objectives
- Familiarize yourself with the responsibilities and terms associated with banks, financing companies, and other capital providers in the allocation of funds.
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