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To the best of my knowledge I would have to say that if you have a low credit score it does not effect the prime interest rate. However, it might determine whether or not you get a loan. The prime interest rate is usually 3% above the federal funds rate. This is what the banks see and determine what there rates will be.
The difference is that rates charged by banks to the public have an additional rate added to the prime rate based on creditworthiness and rating. Poor credit equals a higher interest rate and vice versa.
The "Prime Interest Rate" is the interest rate used by banks to base all their loan interest rates (and sometimes other interest rates) on and is usually lower than the lowest rate charged on loans to customers with the best credit ratings.
A flexible secured loan is a loan instrument that is backed-up by a collateral, usually a property. Another variation for this kind of loan is the Home Equity Line of Credit, whose interest rate is usually tied to the prime interest rate.
"Generally, yes almost anyone, even those with bad credit can get a sub prime loan. Sub prime loans are designed especially for people with bad credit as a way to try to rebuild credit. The interest rates are definitely higher as would be expected, though if the loan is a secured loan the interest rate would be lower than that of an unsecured loan."
Prime rate or prime lending rate is a term applied in many countries to reference an interest rate used by banks. The term originally indicated the rate of interest at which banks lent to favored customers, i.e., those with good credit, though this is no longer always the case. Some variable interest rates may be expressed as a percentage above or below prime rate.
Prime Rate or Prime Lending Rate is a term applied in countries to reference an interest rate used by banks. In the past, the term indicated the rate of interest at which banks lent to favored agents (those with good credit), however, this is not always the case. Many interest rates are expressed as a percentage above or below Prime Lending Rate.
With a credit score of 529, one will not be able to get any prime or near-prime credit unless one obtains a co-signer with a notably higher credit score. The options available for one with a credit score of 529 include the following: * Subprime mortgage (at a very high interest rate) * Payday loans (at a very high interest rate) * Secured credit card (secured by a deposit, will help build credit score with ontime payments) * Auto title loan (if one owns the car and there is a reasonable amount of value in that car)
According to the Reserve Bank of India (RBI), banks are free to fix the Benchmark Prime Lending Rate (BPLR) with the approval of their respective Boards. Banks are free to decide the BPLR but their interest rates have to have a reference to the BPLR fixed. The BPLR is the interest rate that commercial banks charge their most credit-worthy customers.
when banks have more liquidity in their net. every bank have have to reduce their lending rates in order to attracting their credit-worthy customers
Your bank will know the prime interest rate (also known as the "United States Prime rate" in the same manner that it becomes known to other banks. The rate is determined by the Wall Street Journal based on polling the nations top 10 banks. The rate is updated when at least 7 of the 10 banks change their interest rates. The rates are a composite of these top banks and the "prime interest rate" is published in the Wall Street Journal.
Prime Rate -A+