Katie bought a bike on an Installment loan for 762 on a 14% interest rate. She will pay it back with 42 monthly payments.

answer; i believe that the correct answer is (an elevator pitch);

answerdemographic;

credit history is used by lenders to determine whether you are a 'risky' person to give their money to.

having a short history provide very little data for the lenders. they wouldn't be able to determine your credit behavior from such a small samples. even if they are perfect.

having long credit history with few blemishes provide larger and more accurate data for the lenders to predict your credit behavior.