If so how is the interest rate calculated according to the risk rating.
2007-09-06 06:58:32 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
The lower a customer's risk rating, the better risk he or she is. So the bank should offer that customer a lower interest rate on any loans.
2007-09-06 07:02:35 · answer #1 · answered by kja63 7 · 0⤊ 0⤋
Yes it will be lower. Only the banks know how they make up those rates and they sure will not tell the rest of us.
A couple of years ago Ford ran a deal where they looked at risk of customer loans and gave zero percent interest loans to new car buyers who they considered low risk. Not long after that the Ford dealers selling used-cars made the same offer to their customers. I notice now that the TV ads for cars say that they provide "interest-free loans to our best-credit customers." So I think that gimmick is back again.
2007-09-06 07:13:39 · answer #2 · answered by Rich Z 7 · 0⤊ 0⤋
Generally yes, although deposits also play into the picture.
Each bank devises its own way of calculating the interest rate charged to a customer.
2007-09-06 07:05:29 · answer #3 · answered by ? 5 · 0⤊ 0⤋
Generally, yes. It depends on the bank and the type of loan we're talking about (cc, auto, mortgage).
2007-09-06 07:11:39 · answer #4 · answered by John B 2 · 0⤊ 0⤋
it depends on the bank just ask the loan officer
2007-09-06 07:04:01 · answer #5 · answered by Anonymous · 0⤊ 0⤋