Types of Interest Rates and Fees Associated With Credit Cards Dependent Upon Credit Rating
Credit cards come in many different varieties.
From the different types of cards such as Visa and MasterCard to the different termsassociated with the card itself, i.
interest rate and fees, there are many types of creditcards to choose from when applying for a card.
One common question which often arises inconjunction with credit cards is whether or not the credit rating of the individual willaffect the types of interest rates and fees they have attached to each credit card.
Forexample, will someone with fair credit get a better type of credit card than one whohas bad credit is an often-asked question.
The following will describe credit card interestrates and fees and detail whether the categories of bad credit, fair credit, good credit andexcellent credit will equate with better or worse fees and interest rates.
Credit Card Interest Rates and Credit Ratingof the Individual Interest rates are available in varying percentages.
The APR on a creditcard is often determinant upon the individual credit rating of the applicant.
In general,a credit card applicant who has bad credit will have a higher percentage interest ratethan those who have fair, good or excellent credit ratings.
In other words, the bettercredit which one has, the more likely it is that they will receive lower interest rateoffers on their credit cards.
This is due to the fact that credit card companies wantthe business of individuals who have the best credit ratings and will offer lower interestrates to entice them in hopes of getting their application.
On the other hand, individualswho have fair or bad credit scores will be more of a risk to the credit card companyand they will need to have a safeguard in place in order to ensure that they are gettingsomething in return for giving this type of individual a credit card.
Credit Card Feesand Credit Rating of the Individual Another question which often arises with regard tocredit card applicants and their credit ratings is whether or not the fees will differ amongstthe following categories of individuals: bad credit, fair credit, good credit and excellentcredit applicants.
There are many types of fees often associated with credit cards suchas late fees, over the limit fees and more.
For the most part, the credit rating of theindividual, i.
bad, fair, good or excellent, will not have an effect on the amount of thefees which are attached to their credit card account.
In general, once the individual obtainsa credit card with a certain company, no matter what their individual credit rating may be,they will pay the same amount with regard to fees.
Things Which Will Be Dependent Upon CreditRating To sum it all up, certain things which can and will be dependent upon individualcredit scores when individuals apply for credit cards include interest rate, offers and approvalrating.
Therefore, one who has excellent credit scores will often find it easier to obtaina credit card and get a lower interest rate on that card.
In general, the chances of obtaininga card and getting a low interest rate will often decrease the worse that one's creditscore is.
The best way to ensure that you will be able to obtain the best type of creditcard is to improve your overall credit score by paying bills on time and establishing goodcredit.