To determine who will get the better loan rate from the banker, we need to consider several factors from the applicants' information:
1. Length of Employment: Having a longer tenure at a job can suggest job stability.
2. Monthly Salary: Higher income can be an indication of better ability to repay the loan.
3. Number of Credit Cards: This might not directly impact the decision as much as how the credit cards are managed.
4. Amount of Debt: Lower debt implies a better financial situation.
5. Payment History: Fewer late payments indicate better financial responsibility.
Let's summarize the information given:
### Harold:
- Years at Job: 3 years
- Monthly Salary: [tex]$2,600
- Credit Cards: 2
- Debt: $[/tex]3,000
- Late Payments: 1
### Elaina:
- Years at Job: 7 years
- Monthly Salary: [tex]$2,250
- Credit Cards: 6
- Debt: $[/tex]12,000
- Late Payments: 8
### Analysis:
- Length of Employment: Elaina has an advantage with 7 years compared to Harold's 3 years.
- Monthly Salary: Harold has a higher monthly income ([tex]$2,600) compared to Elaina ($[/tex]2,250).
- Credit Cards: Elaina has more credit cards, but this factor doesn't outweigh the other more critical factors.
- Amount of Debt: Harold has significantly less debt ([tex]$3,000) compared to Elaina ($[/tex]12,000).
- Late Payments: Harold has only 1 late payment, indicating he is more reliable in paying bills on time, whereas Elaina has 8 late payments.
Given these points:
- Harold pays his bills on time (1 late payment vs 8 for Elaina).
- Harold has less debt compared to his income.
- Harold’s higher monthly salary suggests better capability to repay the loan.
Based on these factors, Harold will get the better loan rate because he pays his bills on time and does not have too much debt compared to his income.
Thus, the correct answer is:
Harold because he pays his bills on time and does not have too much debt compared to his income.
