Question

a car dealership analyzing whether it will loan money to william to buy a new car finds that his credit score is in the \very good\ range. which statement best describes the lenders viewpoint of william? \bigcirc he is a low-risk borrower who qualifies for lower interest rates. \bigcirc he is a low-risk borrower who will struggle to obtain a loan. \bigcirc he is a high-risk borrower who will get multiple loan offers. \bigcirc he is a high-risk borrower who qualifies for higher interest rates.

Explanation:

A "very good" credit score indicates that the borrower (William) has a history of responsible credit use. Lenders view borrowers with good credit scores as low - risk because they are more likely to repay the loan on time. Low - risk borrowers are typically offered lower interest rates as an incentive and because the lender has more confidence in their ability to repay. The other options are incorrect: a low - risk borrower with good credit should not struggle to get a loan, high - risk borrowers are associated with poor credit (not good credit) and would get higher interest rates or struggle to get loans, not multiple offers.

Answer:

A. He is a low - risk borrower who qualifies for lower interest rates.