Credit Cards & Interests Rates: How One Affects The Other

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Credit Cards Interests Rates How One Affects
The Other

• Presented by
• The Phenix Group

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Your credit history and score affect your ability
to borrow money, and the interest rate youll
pay. This can make it easier or harder for you to
pay off your loans.

• What is your credit score?
• - A number composed of your credit history.
• - It tells lenders how much of a risk you are,
  and is why you should maintain a good credit
• score.

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How a credit score is determined

• - What determines a credit score? Payment
  History, Amount Owed, Credit History, Types
• of Credit, and New Credit.
• - Payment history? The number of accounts you
  have versus how many payments youve
• made on time, and if youve filed for bankruptcy.
• - Amount owed ?Your spending habits and the
  amount of money you owe.
• - Credit history ?How long youve had credit
  cards and other forms of credit. The longer
• your credit history, the better.
• - Types of credit ?Having more variety in your
  types of credit shows youre a well-rounded
• borrower.
• - New credit ?The new lines of credit you opened
  up recently.

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Credit interest rates

• Credit scores range from 300 to 850 and will
  affect the interest rate lenders offer.
• - A high score says youre low risk and
  dependable, which means youll get a lower
• interest.
• - Lower scores (usually below 620) means youll
  get a high-interest rate or may not get a
• loan.

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How to improve credit score

• - Make your payments on time.
• - Reduce your credit to debt ratio to be 30 or
  lower.
• - Pay off high balances as quickly as possible.
• - Get help from a credit counselor to rebuild
  your credit.

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Be smart about using your credit, make your
payments on time and you should have no trouble
when it comes time to get a mortgage or loan.

• Learn more at
• https//thephenixgroup.com/credit-cards-interests-
  rates-how-one-affects-the-other/