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Why is the interest rate on a credit card usually higher than the interest rate on an automobile loan?
Wiki User
∙ 13y ago
Credits on the Cards would normally come interest free for a period of 20 to 48 days subsequently interest would be charged on daily basis unlike in other financial product. Hence, it is always advised to the customer not to revolve but to pay the total amount due within the stipulated due dates.
Wiki User
∙ 13y ago
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Does a credit union have a higher interest rate than a bank?
They do usually have a higher interest rate, but it's only about .25 to .50 percent higher.
What is an advantage of having an interest rate credit card?
The advantages of having a credit card with an interest rate is it helps build one's credit faster. The higher the interest rate of the credit card, the higher the credit score.
What is the interest rate on loan?
Interest rates are based solely on the severity of your credit. Good credit = low interest rate. Bad credit = higher 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.
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.
Does a credit union have a higher interest rate than a bank?
They do usually have a higher interest rate, but it's only about .25 to .50 percent higher.
What is an advantage of having an interest rate credit card?
The advantages of having a credit card with an interest rate is it helps build one's credit faster. The higher the interest rate of the credit card, the higher the credit score.
Do you have to pay interest on a Cash Advance?
If you take a cash advance from a credit card you do have to pay interest. It is usually a higher interest rate than your card normally charges for purchases.
What is the interest rate on loan?
Interest rates are based solely on the severity of your credit. Good credit = low interest rate. Bad credit = higher 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.
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.
Are interest rates on auto loans much higher if you have bad credit?
Interest rates on auto loans are much higher with bad credit compared to an auto loan with good credit. Many times a person with bad credit will receive an interest rate of 18% and up.
Where can I apply for the lowest interest credit cards?
The lowest interest rates on a credit card are made when the person has a good credit rating. The higher the limit, the lower the interest rate also.
Why are there two mortgage rates?
Often, a mortgage rate depends on the person's credit. If the credit rating is good, then they usually get a lower interest rate. But if their credit is not good or if they have not yet established a credit history, then they often pay a higher rate.
Will I have to pay higher interest rates on student loans if I have bad credit?
Anyone with bad credit will pay higher interest rates on a loan, not just a student loan. The lender charges a higher interest rate which enables the facility to receive more interest quicker in case of default.
How do credit unions compare to banks?
Generally speaking, Credit Unions have lower interest rates on loans and credit cards, and higher interest rates on deposits (Savings, CDs, etc) compared to Banks. On the down side, they are usually small, which means less branches, less ATMs.
What kind of Credit score to purchase a used vehicle?
Most of the time any credit will do, as long as its not a horrible score. If you have no credit its very easy to do, however you will usually incur a higher interest rate. Usually between 14 and 18% APR as a first time buyer.
