Why do lenders often require a down payment when credit is used to purchase a good?

It reduces risk to the lender.
It eliminates interest charges.
It reduces the cost of the financed good.
It increases the cost of financing the good.

Question

Why do lenders often require a down payment when credit is used to purchase a good?

It reduces risk to the lender.
 It eliminates interest charges.
 It reduces the cost of the financed good.
 It increases the cost of financing the good.

KiWiPoP1 · Answer

Well what do you think the answer is, or do I need to explain

Angle · Answer

https://www.rocketmortgage.com/learn/what-is-a-down-payment

Xxbabyjas04xx · Answer

$\color{#0cbb34}{\text{Originally Posted by}}$ @KiWiPoP1
Well what do you think the answer is, or do I need to explain
$\color{#0cbb34}{\text{End of Quote}}$
I thought the answer was A

Angle · Answer

I think that is correct

KiWiPoP1 · Answer

Yeah that sounds good to me

Xxbabyjas04xx · Answer

$\color{#0cbb34}{\text{Originally Posted by}}$ @Angle
I think that is correct
$\color{#0cbb34}{\text{End of Quote}}$
Ohhh ok thxx it was correct

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