Everfi Build Part 2 Growing Credit

Which of these criteria make a person a good cosigner?

• They rent an apartment

• They have a steady job

• They have many debts

• They pay their bills late

How do lenders evaluate if a borrower or cosigner will pay them back?

• Cadence, collateral, calendar

• Callousness, capacity, , character

• Capacity, criticism, character

• Capacity, collateral, character

What is the correct definition of capacity for potential cosigners?

• The cosigner's credit history

• . The cosigner's financial assets, such as a house or car

• The cosigner's past record of paying on time

• The cosigner's current financial situation

What is the correct definition of collateral for potential cosigners?

• The cosigner's credit history

• The cosigner's financial assets, such as a house or car

• The cosigner's past record of paying on time

• The cosigner's current financial situation

What is the correct definition of character for potential cosigners?

• The cosigner's current bank balance

• The cosigner's financial assets, such as a house or ca

• The cosigner's past record of paying on time

• The cosigner's current financial situation

What is the correct definition of a cosigner for a loan?

• Someone who will pay a loan for a borrower

• Someone who will promise to pay a loan if the borrower doesn't.

• Someone who will pay the electric bills for a borrower

• Someone who signs the loan documents

Why would a borrower get a cosigner for a loan?

• They can't qualify for a loan by themselves

• They need help evaluating the loan terms

• . The borrower can handle the entire loan themselves

• They want to open a savings account

Chris wants to get a cosigner for a car loan. Which person would be the best choice?

• A person with bad credit but a steady job.

• A person with no assets (car, house, or financial account)

• A person with a good credit history and a car and house

• A person with some late payments on their credit card

Chris asks Sarah to cosign, but she says that she doesn't have a good credit history. Which of the following make her unable to cosign for Chris?

• She has very little debt which affects her capacity

• She has made late payments which affects her character

• She has a good character since she pays all credit card bills in full

• She owns her condo which affects her collateral

Why would a person refuse to cosign for a loan?

• They want to help the person applying for a loan but would rather just pay for it for them

• They are not prepared to take on another financial obligation

• They can make payments if the borrower doesn't

• They trust the person who's applying for the loan