prob 16. why might lenders offer lower interest rates to individuals with high credit scores? it is only a…

prob 16. why might lenders offer lower interest rates to individuals with high credit scores? it is only a promotional offer from some lenders. it is because they pose a lower risk of defaulting on payments. it helps increase the total loan amount. it is a regulatory requirement.

prob 16. why might lenders offer lower interest rates to individuals with high credit scores? it is only a promotional offer from some lenders. it is because they pose a lower risk of defaulting on payments. it helps increase the total loan amount. it is a regulatory requirement.

Answer

Brief Explanations:

Individuals with high credit scores are less likely to default on loans. Lenders offer them lower interest rates as they pose lower risk, which is a standard practice in finance to balance risk - return.

Answer:

It is because they pose a lower risk of defaulting on payments.