You are a loan officer trying to decide which clients deserve your best rates. The table below shows the credit scores of several loan applicants.
| Name | Experian | Equifax | TransUnion |
| :------ | :------- | :------ | :----------- |
| Kellin | 720 | 783 | 733 |
| Natasha | 699 | 684 | 784 |
| Edward | 789 | 658 | 782 |
| Lisa | 810 | 679 | 792 |
Based on each applicant's median credit score, who deserves your best interest rates?
A. Kellin
B. Natasha
C. Edward
D. Lisa
Answer (1)
Calculate the median credit score for each applicant.
Compare the median credit scores of all four applicants.
Identify that Lisa has the highest median credit score of 792.
Conclude that Lisa deserves the best interest rates. L i s a
Explanation
Understanding the Problem We are given a table of credit scores for four loan applicants from three different credit bureaus. Our goal is to determine which applicant deserves the best interest rates based on their median credit score. The applicant with the highest median credit score will be deemed most creditworthy and thus deserving of the best rates.
Calculating Median Credit Scores To find the median credit score for each applicant, we first need to sort their three credit scores and then identify the middle value.
Kellin's Median For Kellin, the scores are 720, 783, and 733. Sorting these gives 720, 733, 783. The median is 733.
Natasha's Median For Natasha, the scores are 699, 684, and 784. Sorting these gives 684, 699, 784. The median is 699.
Edward's Median For Edward, the scores are 789, 658, and 782. Sorting these gives 658, 782, 789. The median is 782.
Lisa's Median For Lisa, the scores are 810, 679, and 792. Sorting these gives 679, 792, 810. The median is 792.
Comparing Medians Now we compare the median credit scores: Kellin (733), Natasha (699), Edward (782), and Lisa (792). The highest median score is 792, belonging to Lisa.
Conclusion Therefore, Lisa deserves the best interest rates due to her highest median credit score.
Examples
Credit scores are a numerical representation of your creditworthiness. Banks and lenders use these scores to assess the risk of lending you money. A higher credit score typically means lower interest rates on loans, saving you money over time. By maintaining a good credit history and monitoring your credit scores, you can ensure you receive the best possible terms on mortgages, car loans, and other types of credit.
