What You Must Know When Conducting a Credit Card Comparison

The Definition of a Credit Card Comparison

A Credit Card Comparison is a method of analysis undertaken by individuals interested in both the application, as well as the receipt of a subsequent approval for eligibility for a credit card. Prior to conducting a Credit Card Comparison, individuals are encouraged to not only investigate the wide range of credit cards available for commercial patronage, but also the components, terms, and conditions latent within the entirety of the credit card institution.

Annual Percentage Rates (APR)

This type of interest is defined as an expressed and established percentage of the gross available balance of a credit card, which is added to the full amount in the midst of repayment.

Credit Limit

The maximum amount of funds available for use by the individual owner of the credit card, these funds are required to be repaid in addition to any accrued interest.

Understanding the Institution of Credit When Conducting a Credit Card Comparison

The following standards and practices are amongst the most commonly-referred and mentioned within the realm of the credit card industry:

Your Credit Score and Credit Card Comparison

Your credit score is a rating that is determined on an individual basis with regard to the respective credit history and eligibility attributed to an applicant for credit cards. A credit score is typically determined through the usage of the Fair, Isaacs, & Co. (FICO) ratings system. This system undertakes the analysis of individual credit scores upon the investigation of individual financial history.

Your Credit History and Credit Card Comparison

The enactment of individual Credit Card Comparison should include an investigation into individual credit card history. Perhaps the most influential component of the determination of credit scores through the analysis of credit history is the process of repayment.

The repayment process addresses the level of promptness and sufficiency of satisfying any or all outstanding credit card balances. These results account for upwards of 35% of the determination process.

Additional factors include the median amount of remaining funds available for use. This is defined as the amount of money spent in conjunction with the remaining line of credit on an individual credit card. Typically, individuals interested in the increase of their respective credit scores are encouraged not to surpass the 50% mark.

Understanding Your Credit Rating Amidst a Credit Card Comparison

The following classifications exist with regard to the FICO credit ratings categorization:

Credit scores classified as ‘excellent’ will typically range from 850 (the maximum score) to 740;

Credit scores classified as ‘good’ or ‘very good’ will typically range from 739 to 700;

Credit scores classified as ‘fair’ or ‘average’ will typically range from 699 to 620;

Credit scores classified as ‘low’ will typically range from 619 to 580;

Credit scores classified as ‘poor’ will typically range from 579 to 300 (the minimum score).

Choosing a Credit upon the Initial Completion of a Credit Card Comparison

When you have determined your individual credit rating, credit score, and credit history, you will be able to explore standards and practices of not only the approval process with regard to credit cards, but also the terms and conditions latent within them.

Credit Card Comparison for ‘Excellent’ or ‘Good’ Credit Scores

Typically, individuals in possession of ‘Excellent’ credit scores conducting a Credit Card Comparison will be eligible for the following:

The most attractive interest and annual percentage rates (APR) ranging between 2% and 5%;

The highest credit limits;

Unsecured Credit Cards.

Credit Card Comparison for ‘Average’ or ‘Fair’ Credit Scores

Typically, individuals in possession of ‘Fair’ or ‘Average’ credit scores conducting a Credit Card Comparison will be eligible for the following:

Annual percentage rates (APR) ranging between 8% and 20%;

Average credit limits;

Both Secured or Unsecured Credit Cards.

Credit Card Comparison for ‘Low’ or ‘Poor’ Credit

Typically, individuals in possession of ‘low’ or ‘poor’ credit scores conducting a Credit Card Comparison will be eligible for the following:

Annual percentage rates (APR) ranging between 10% and upwards of 25%;

Comparably low credit limits oftentimes requiring surety deposits;

Largely Unsecured Credit Cards.

NEXT: Interest Rates