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?
\bigcirc tamera’s credit limit is most likely higher than rupert’s, and her interest rate is most likely lower.
\bigcirc tamera’s credit limit is most likely lower than rupert’s, and her interest rate is most likely higher.
\bigcirc rupert’s credit limit is most likely higher than tamera’s, and his interest rate is most likely lower.
\bigcirc rupert’s credit limit is most likely lower than tamera’s, and his interest rate is most likely lower.

Explanation:

Lenders typically offer higher credit limits and lower interest rates to individuals with positive credit histories (like Tamera) because they are seen as lower-risk borrowers. Conversely, those with negative credit histories (like Rupert) face lower limits and higher rates due to perceived higher risk of default.

Answer:

A. Tamera's credit limit is most likely higher than Rupert's, and her interest rate is most likely lower.