QUESTION IMAGE
Question
tamera and rupert each applied for the same credit card through the same company. tamera has a positive credit history, rupert has a negative credit history. which compares their credit limits and likely interest rates? tameras credit limit is most likely higher than ruperts, and her interest rate is most likely lower tameras credit limit is most likely lower than ruperts, and her interest rate is most likely higher. ruperts credit limit is most likely higher than tameras, and his interest rate is most likely lower. ruperts credit limit is most likely lower than tameras, and his interest rate is most likely lower.
In credit systems, a positive credit history (like Tamera's) typically leads to better terms: higher credit limits (lenders trust reliable borrowers with more credit) and lower interest rates (lower risk of default, so lenders charge less). A negative credit history (Rupert's) means lenders see higher risk, so they offer lower credit limits and higher interest rates. So Tamera’s credit limit is higher and interest rate lower than Rupert’s.
Snap & solve any problem in the app
Get step-by-step solutions on Sovi AI
Photo-based solutions with guided steps
Explore more problems and detailed explanations
A. Tamera’s credit limit is most likely higher than Rupert’s, and her interest rate is most likely lower