Why Is It So Important That You Make All of Your

question 110

Multiple Choice

Why is it so important that you make all of your credit and loan payments on time?

• A) Late payment history lasts 7 years on your credit file.
• B) The lender will be annoyed and not extend additional credit to you.
• C) Late payment history lasts 10 years on your credit file.
• D) Paying your credit cards and loans late just once will lead to bankruptcy.

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Definitions:

Good News

Information or updates that are positively received by stakeholders, potentially leading to an increase in stock price or improvement in business prospects.

Stock Returns

The gain or loss on a stock investment, typically expressed as a percentage, accounting for dividends, price appreciation, and splits.

Earnings Announcement

The public declaration of a company's profitability for a specific period, often impacting its stock price.

Credit Risk

The risk that a lender may not receive the owed principal and interest, leading to disrupted cash flows and increased costs for collections.