Which of the following is considered useful information when applying for credit?

• A. The number of social media followers you have
• B. Your current income and employment status
• C. Your preferred vacation destinations
• D. Your favorite hobbies

Answer: (B)

Verified step by step guidance

1. Understand the context of the question: The problem is asking about useful information when applying for credit. Credit applications typically require financial and employment-related details to assess the applicant's ability to repay the borrowed amount.
2. Step 1: Identify the purpose of the credit application. Lenders need to evaluate the applicant's financial stability and reliability. This involves analyzing income, employment status, and other financial indicators.
3. Step 2: Eliminate irrelevant options. Social media followers, vacation destinations, and hobbies are not directly related to financial stability or repayment ability, so they are not considered useful information for credit applications.
4. Step 3: Focus on relevant information. Current income and employment status are critical factors because they provide insight into the applicant's ability to generate consistent income and meet repayment obligations.
5. Step 4: Conclude that the correct answer is 'Your current income and employment status,' as this information is directly relevant to the lender's decision-making process.