Question

A pawn shop requires

Select the best answer from the choices provided.
OA.
OB.
O c.
a co-signer if a borrower has bad credit
a co-signer for all borrowers
no collateral if a borrower has good credit
OD. collateral for all borrowers

Answer 1

A pawn shop requires. collateral for all borrowers. Option D is correct

In a pawn shop, the requirement for a co-signer, collateral, or credit evaluation often depends on the individual borrower's creditworthiness and the policies of the specific pawn shop.

Collateral is an asset that the borrower pledges as security for the loan. If the borrower fails to repay, the pawn shop can seize the collateral. Good credit is often an indicator of a borrower's reliability in repaying loans, so the pawn shop may feel comfortable extending credit without the need for additional security.