Question

People with a lower credit score typically pay _________ interest rates when borrowing money which _________ the cost of borrowing.

a)Lower, Decreases
b)Higher, Increases
c)Lower, Increases
d)Higher, Decreases
e)Lower, doesn't affect

Answer 1

The answer is b !!!!

Answer 2

Answer is B, People with a lower credit score typically pay higher interest rates when borrowing money which increases the cost of borrowings.

When people borrow money from banks, banks see their credit score history before giving the loan. If credit score is good enough, they offer him lower interest rate, and if the credit score is not up to the mark, the interest rates are typically higher for them. So when interest rate is higher, the cost of borrowing increases. He has to pay more money to utilize the borrowed money.