Reference no: EM131723365

Question: The Childress family has applied for a $5,000 loan for home improvements, especially to install a new roof and add new carpeting. Bob Childress is a welder at Ford Motor Co., the first year he has held that job, and his wife sells clothing at Wal-Mart. They have three children. The Childresses own their home, which they purchased six months ago, and have an average credit rating, with some late bill payments. They have a telephone, but hold only a checking account with a bank and a few savings bonds. Mr. Childress has a $35,000 life insurance policy with a cash surrender value of $1,100. Suppose the lender uses the credit scoring system presented in this chapter and denies all credit applications scoring fewer than 360 points. Is the Children fam­ily likely to get their loan?