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?
Tamera’s credit limit is most likely higher than Rupert’s, and her interest rate is most likely lower.
Tamera’s credit limit is most likely lower than Rupert’s, and her interest rate is most likely higher.
Rupert’s credit limit is most likely higher than Tamera’s, and his interest rate is most likely lower.
Rupert’s credit limit is most likely lower than Tamera’s, and his interest rate is most likely lower.

Answer 1

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

Reason: A positive credit history signals lower risk, so issuers usually offer higher limits and lower interest rates; a negative history leads to lower limits and higher rates.