Practice what you learned

Select the advice you feel is best.

Imagine a friend of yours, John, comes to you for advice: he has found a home he loves and wants to buy as his first home, but his credit score is low: 590. What advice would you give him?





Correct! Engaging in credit rehab is the best path for John. His credit score will only qualify him for a subprime loan, meaning he‘ll get stuck paying a considerably higher rate that could result in his paying tens (or even hundreds!) of thousands of dollars more over the life of the loan, and he may also be subjecting himself to a number of hidden charges that come with the loan.

As for hiring a credit repair company -- there may be some good ones out there (as well as some that engage in questionable activities), but they can’t do anything that John couldn’t do himself and he shouldn’t waste his time or money.

Incorrect. Engaging in credit rehab is the best path for John. His credit score will only qualify him for a subprime loan, meaning he‘ll get stuck paying a considerably higher rate that could result in his paying tens (or even hundreds!) of thousands of dollars more over the life of the loan, and he may also be subjecting himself to a number of hidden charges that come with the loan.

As for hiring a credit repair company -- there may be some good ones out there (as well as some that engage in questionable activities), but they can’t do anything that John couldn’t do himself and he shouldn’t waste his time or money.

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