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Why does closed-end credit have a better interest rate than open-ended credit?
Wiki User
∙ 13y ago
Generally, closed-end credit has a better interest rate than that of open-ended credit because closed-end credit is less risky insomuch as there is a limit on how much credit may be utilized (whereas there is no limit for open-ended credit).
Because lenders look at the risk-reward aspects of the product portfolio, a lower-risk product warrants a lower interest rate than one having higher risk.
Wiki User
∙ 13y ago
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Do Pioneer military loans generally have a better interest rate that regular banks and credit cards?
Pioneer Military loans may have better interest rates than regular banks or credit cards, but this depends on your credit. If you have a good credit score, you're more likely to get a better interest rate on a loan.
How does one qualify to get low interest auto loans?
One of the best ways to qualify for low interest loans is to have really good credit. The better your credit the better your chances of getting a low interest loan.
Where can a low interest credit card offer be found?
I have had great luck with credit karma but often the better your credit score is the lower your interest rate offers will be. If you re perceived as high credit risk your not going to get a low interest rate.
Is a line of credit better than credit cards?
Lines of credit tend to have lower interest rates than credit cards.
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.
Do Pioneer military loans generally have a better interest rate that regular banks and credit cards?
Pioneer Military loans may have better interest rates than regular banks or credit cards, but this depends on your credit. If you have a good credit score, you're more likely to get a better interest rate on a loan.
How does one qualify to get low interest auto loans?
One of the best ways to qualify for low interest loans is to have really good credit. The better your credit the better your chances of getting a low interest loan.
What is the relationship between credit and loans?
Yes, your credit score does affect the loans you are able to receive. The better your credit score, the better of an interest rate you will get.
Where can a low interest credit card offer be found?
I have had great luck with credit karma but often the better your credit score is the lower your interest rate offers will be. If you re perceived as high credit risk your not going to get a low interest rate.
Is a line of credit better than credit cards?
Lines of credit tend to have lower interest rates than credit cards.
What is the average interest on a USA credit loan?
The average interest on a credit card in the USA is around 20 percent. Depending on how good your credit score is, you will get a better or worse interest rate. If you have very high interest rates but continue to pay your credit card on time the company may lower your interest rate.
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 the average interest rate on personal loans?
This all depends on how good your credit rating is. The better your credit rating, the lower the interest rates. https://www.lendingtree.com
Is it better to have a credit card with a high interest rate or low interest rate?
If you carry a balance, then it's better to have a low interest rate. If you do not carry a balance, then the interest rate doesn't matter at all.
How can you lower your interest rate on credit card?
Your credit score plays a huge role in determining the interest rate that credit card companies are willing to offer you. Generally, the better your credit score, the lower the interest rate you can expect to pay. You may want to get a copy of your credit score, and see if there are any discrepancies or outstanding debts that you didn't know about. If you can fix these problems, your credit score will generally improve over time, and then you can reapply for a credit card with a lower interest rate, or call your credit card company and see if they can give you a better deal with your improved credit score.
Is it better if I pay of my credit card balaces with money I have on side or if I just keep paying payments that I can each month?
The answer to that question depends on how much interest you are paying and how much interest you are earning. Almost all of the time it is better to pay off your credit cards. But if you need to borrow for something else then you need to compare interest rates before you pay offthe credit cards. But ALMOST ALL of the time paying off a credit card and not paying interest is in your best interest.
How important is your credit score when getting a car loan?
When one is trying to get a car loan, the importance of the credit score is mostly important when calculating the interest of the loan. A better credit score means a lower interest rate.
