1. What is the correlation between a high credit score and loan interest rates?

A) A high credit score will yield a high interest rate.

B) A high interest rate will increase a credit score

C) There is a small correlation; however, the credit score is not heavily weighted in determining interest rates.

D) A high credit score will yield a low interest rate.

Answer:D

Explanation:

high credit score means you have a good standing and are low risk of defaulting on the debt so you will incur low interest rates

Hello there!

Your answer would be D). A high credit score will yield a low interest rate.

The reason why "D" would be the correct answer is because a high credit score would give you low interest rates on things like loans, payments, etc. A credit score is a score that someone that shows loaners or other companies how well someone keeps up with paying their loans. When you have a super good credit score, for example, 735, loaners would give you a lower interest rate because they could trust you with paying them back, since the credit score is so high. if someone's credit score is a 435, then loaners would give them a high interest rate because they can't trust them to pay back the money they got for the loan, and the high interest rate would substitute for the money that hey did not receive (if the person who got the loan didn't pay them back).