When Banks offer low interest rate to people with good credit rating, this can be said that these banks are making profits with very low risk
They are making profit with low risk in the sense that they are sure and confident that the customer is worthy enough to return the money and the profit in due time, and in return they give the borrowers low interest rate
Alternatively, If a lender does decide to approve someone with lower credit scores, they will often give them a higher interest rate to mitigate risk.
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