Question

What is the effect of a higher cost of borrowing? Write 3 points.

Answer 1

Answer:

1. Credit score. Your credit score is a three-digit number that generally carries the most weight when it comes to determining your individual creditworthiness. ...
2. Loan-to-value ratio. ...
3. Debt-to-income.

Answer 2

Answer:

•A large demand for loans prompts banks to raise charges for that money, so borrowing rates rise.

•The more you borrow, the more you will have to pay back every month.

•Inflation refers to the rise in the price of goods and services over time.