Why do some lenders require borrowers to secure credit?

to prevent defaults

to guarantee full repayment

to avoid any losses

to reduce risk

Question

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Social Studies

26 April, 04:40

Why do some lenders require borrowers to secure credit?

to prevent defaults

to guarantee full repayment

to avoid any losses

to reduce risk

+5

Answers (1)

Know the Answer?

Ariana Walters · Answer 1

I believe the answer is: To prevent defaults

In credits, defaults refers to the inability to either paid your credit or interest when the time is due. As the number of defaults increase, it would be much harder for the borrower do propose a similar credit in the future because their credibility is dropped.

Why do some lenders require borrowers to secure credit?to prevent defaultsto guarantee full repaymentto avoid any lossesto reduce risk

Why do some lenders require borrowers to secure credit?

to prevent defaults

to guarantee full repayment

to avoid any losses

to reduce risk