A Consumer’s Interest Rate for a Credit Card Debt Should Not Be Based on Their Credit Score
This topic can be agreed with and disagreed with. This conclusion is based on if you have applied for a credit card and you have been denied because you have had a credit card resent on your credit card than you interest rate should be high. The reason your interest rate should be high is because the credit card company is taking a chance on giving you there credit card. With you having to pay such a high interest rate they want to make sure that you are going to make sure that your payments are made. The credit card company may not approve you for the reason why of having such a resent credit card being put on your credit score. When this happens it is because they want you to make your payments when they need to be made.
After applying for your credit card and you do happen to get approved for it and you have great credit your interest rate may be shockingly low. This is only if you have not had any resent credit card on your credit score, or you may not have applied for a credit card before and you want to try and build your credit. Having a credit card will help you build your credit score. When you have no credit you may not have a very low interest rate because the credit card company wants you to establish some credit. Once you establish credit your interest rate will drop. The only reason you are going to have a low interest rate is due to how good your credit score it. If you have bad credit or no credit then you are going to have high interest rates. It may no be far but that’s how the credit card companies work. With having good credit you are going to have a low interest credit card. You have to pay a higher interest rate when you have no credit. So that you are able to build you some credit. As long as you remember that the better your credit the more than likely you are going to have a low interest rate on any type of loan you are going to...
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