Credit Card Rating defines Credit Card ranking, Excellent credit rating can qualify for loans with a lower than prime interest rate. Credit card rating (rate of interest) is a map to selection of a good credit card. Therefore it needs some good orientation and proper understanding. In credit card comparison an APR is everyone’s concern, but a lowest credit card rate is not the only factor involved, there are others as well.
Credit rating acts as a pointer for many lenders to decide whether to lend or line of credit to an individual. One’s credit rating is volatile in nature and depends on factors. The lenders follow these main agencies for tracing an individual’s credit rating: TransUnion, Equifax and Experian. Though the findings provided by these agencies may differ, but a unified approach is the rule. A FICO Score ranges from 300 to 900 approximates the individual’s risk factor, where 300 is considered extremely high risk and 900 a risk free indicator.
The score is based on a calculation
• The total utilized credit percentage approx (30% FICO Score.)
• Duration of open credit (15% FICO Score.)
• Types of credit lines (10% FICO Score.)
• Magnitude of past credit lines. (10% FICO Score.)
• Payment Offences (35 % FICO Score.)
As a rule of thumb, a 500 credit rating is considered high risk and gets a refusal from the lender in exceptional cases if they do grant one, the borrow is penalized with high interest and offered difficult terms. A 850 and above credit rating will attract a lowest interest and small down payment. A 650 credit rating will fetches favourable terms and new lines of credit.
The credit card rating is other terms it is the rate of interest charged by the card company, which soon follows on non payments. Credit card bills specifies the following: Full amount owed, minimum payment required to be paid by a certain day(avoid late fees) It is the choice of the customers to settle in full or minimum, doing this attracts no additional fees as interest. The minimum payments demand an additional charge as interest depending on the credit card ratings and balance amount.
A good credit rating is determined by factors- proven credit history, debt to income ratio, bad debts versus good debts. People with good credit ratings have benefits like prime rates in loans, lower for loans with lower than prime interest rate. And a bad credit rating makes you lose on these benefits. The credit rating is a result of late payments, debt settlement and bankruptcy. The secret is making payments in time repairs he damaged credit rating.
• Apply for a secured credit card for recovering debts in case of default.
• Check payments are documented, avoid cash payments
• Look for wrong data appearing in your bills. Detect wrong entries in credit score; report it the card company, credit ranking correction takes a month
• A credit card is a source of ratings and needs to be used. Regular and small transactions will help in reflecting in the credit report.
*See the online application for details about terms and conditions Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. When you click on the offer you desire you will have an opportunity to review the credit card terms and conditions on the credit card issuer's web site.