Under the concept of ____,lenders may offer lower interest rates to applicants with the highest credit scores while charging steeper rates to more-risky applicants.
A)credit
B)tiered pricing
C)introductory period
D)default

Question

Quizplus · Accepted Answer

Tiered pricing refers to the practice of offering different interest rates to different borrowers based on their credit risk. Borrowers with good credit scores are typically offered lower interest rates, while those with poor credit scores are charged higher rates. This helps lenders mitigate their risk and ensures that they are compensated for the increased likelihood of default among riskier borrowers.

Under the Concept of ____,Lenders May Offer Lower Interest Rates