Who is likely to pay a lower finance charge based on credit scores?

Individuals with higher credit scores generally qualify for lower finance charges on loans and credit products. This is because lenders view higher credit scores as an indicator of a borrower's creditworthiness and likelihood of repaying a loan on time.

In this scenario, if Hillary has a higher credit score than Stephanie, she is likely to benefit from lower interest rates and finance charges when applying for credit. This is a common practice in lending, where the credit score significantly influences the terms of a loan. Conversely, Stephanie, with a lower credit score, would typically face higher finance charges because lenders perceive her as a higher risk.

Choosing the option indicating Hillary is the one who pays a lower finance charge accurately reflects the principle that better credit scores lead to more favorable lending terms. Factors like payment history, credit utilization, and length of credit history contribute to the credit score and directly impact the cost of borrowing.