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Is it better to have higher interest rate when a company borrows money or to have a lower interest rate?
Wiki User
∙ 12y ago
It depends from your point of view. if you are the company borrowing, it is better to have a low interest rate, because it means you are paying less money when you have to pay back your annual debt. If you say had an interest rate of 6%, you would be paying 6% of the actual amount every time you pay the debt.
Example: You have borrowed $10,000
say if you are paying it off monthly and your interest rate is 5% you would be paying $500 extra.
Wiki User
∙ 12y ago
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What is better a higher or a lower percentage?
If you are receiving interest on an assett, a higher interest is better. If you are paying interest on a debit, a lower interest is better.
Will you pay a higher interest rate on a poor credit loan?
Interest rates are directly tied to your credit history. The company making the loan needs to make money, so your poor credit record will cause them to charge you higher interest.
Which would be better to do, pay of a closed credit card that is at a good rate or pay off the open credit card that has a much higher interest rate Both cards have a large balance.?
It is better to pay off the open card that has the higher interest rate.
Is it better to pay off a credit card with a low interest rate first or a second card with a higher interest rate?
Of the two - you're better off paying the higher-rate card first. If you spread the cost of the higher-rate card over a loinger period - you'll pay more interest, than if you pay the same instalments to the lower-rate card.
Is it better to have a higher the interest rate on a credit card the better that is for the card holder?
No. Using a credit card usually involves borrowing money and you want the lowest interest rate you can get. On the other hand, when saving money you want the highest interest rate.
What is better a higher or a lower percentage?
If you are receiving interest on an assett, a higher interest is better. If you are paying interest on a debit, a lower interest is better.
How Interest Rates can Affect a company?
interest rates reflect the funding cost. for the the company the higher the rates the higher the borrowing cost.
What is times burden covered ratio?
The times interest earned ratio is a financial metric that indicates a company's ability to meet its interest obligations with its operating income. It is calculated by dividing earnings before interest and taxes (EBIT) by interest expense. A higher ratio indicates a company is better able to cover its interest payments.
Why should you get the lowest interest rate?
That is simply not true. It might be better to get a higher interest rate which is fixed for the term of the loan if you expect interest rates to rise.
Will you pay a higher interest rate on a poor credit loan?
Interest rates are directly tied to your credit history. The company making the loan needs to make money, so your poor credit record will cause them to charge you higher interest.
Which would be better to do, pay of a closed credit card that is at a good rate or pay off the open credit card that has a much higher interest rate Both cards have a large balance.?
It is better to pay off the open card that has the higher interest rate.
Borrowing short and lending long?
"Borrowing short and lending long" refers to a risky strategy where a financial institution borrows money on a short-term basis (at a lower interest rate) and then lends it out over a longer period (at a higher interest rate). This strategy can lead to liquidity mismatches and financial instability if interest rates change or if borrowers default on their loans.
I have poor credit, is it still possible to get personal loans without paying a ton of interest?
Loans, in general, are based on risk. The higher the risk, the higher the interest rate. You'll be able to get a loan, but the rate will be higher than if you had better credit.
Is it better to pay off a credit card with a low interest rate first or a second card with a higher interest rate?
Of the two - you're better off paying the higher-rate card first. If you spread the cost of the higher-rate card over a loinger period - you'll pay more interest, than if you pay the same instalments to the lower-rate card.
Is it better to have a higher the interest rate on a credit card the better that is for the card holder?
No. Using a credit card usually involves borrowing money and you want the lowest interest rate you can get. On the other hand, when saving money you want the highest interest rate.
Are low interest loans better than high interest loans?
In general, a low interest loan is better than a high interest loan. The only time this may differ is if you are getting a variable rate loan, which may become lower than a higher fixed rate loan over time. However, this can be hard to predict, so it is always better to go with the low interest rate.
What does the company Conto Arancio offer?
Conto Arancio offers savings accounts, higher interest rates, secure site, and has no annual fees. It is an Italian company which is the first online savings company in Italy.
