How Do Credit Card Ratings Work?

Video Transcript

"This is financial adviser Patrick Munro talking about how do credit card ratings work? Credit cards generally have different tiers of level of risk and they range from A1 credit cards for people with excellent credit down to sub prime credit cards for people with marginal credit or in fact bad credit. It depends on how you are on the tier of influence as to what your credit score is as to how your credit card will come to you in the mail. It is important to apply for a credit card when you feel confident that you have good credit and if not you may want to choose to use cash or a prepaid credit card until your credit becomes available and better to apply for an A1 card because you want to avoid paying excess interest. The worse off you are in a credit perspective the higher risk you are deemed to be and therefore you have to pay a higher interest rate. However, if you are in excellent credit and you know it, you can also go back to the credit card company and say and make your case and they will in fact lower your interest to keep you as an excellent customer. This is Patrick Munro talking about how credit card ratings work relative to credit cards."