Final answer:
A lower interest rate is preferable for loans, and a higher credit score often leads to a lower APR, as it signifies better creditworthiness.
Step-by-step explanation:
When borrowing money through a loan, it is better to have a lower interest rate. A higher credit score indicates good credit and will lead to a lower APR, or interest rate on the loan. The credit score is a reflection of a borrower's credit history and their reliability in repaying debts. Factors such as late payments, high profits, and the general state of interest rates in the economy can influence the attractiveness of a loan and the interest rate offered. A borrower who has a track record of late payments may be perceived as risky, leading to a higher interest rate to compensate the lender for the increased risk. Conversely, if the borrower is financially stable or if prevailing interest rates are low, the borrower may secure a loan with a more attractive, lower interest rate.