What information may a creditor inquire about from a customer related to their credit application?

A creditor may inquire about both employment history and credit history from a customer related to their credit application.

Employment history provides insight into the applicant’s job stability and income, which are critical factors in assessing their ability to repay a loan. Knowing where the applicant has worked, how long they have been employed, and their current earnings helps creditors evaluate the risk involved in lending to that individual.

Credit history is equally important, as it reveals the applicant’s past behavior with borrowing and repaying debts. This information includes credit scores, outstanding balances, payment history, and any defaults or bankruptcies. A good credit history indicates responsible financial behavior, while a poor credit history may signal potential risk to the creditor.

Therefore, gathering both employment and credit history allows creditors to make informed decisions regarding a customer’s creditworthiness, making the selection of both factors as the correct answer essential in understanding the credit application process.