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A-Credit

Source: Investopedia
This Article has been Edited for Accessibility

A-Credit

What is 'A-Credit'

The highest credit grade available as assigned to a borrower by a lender. Lenders use a credit grading system to qualify borrowers. The higher the borrower's credit grade, the lower the interest rate offered to that borrower on a loan.

Explaining 'A-Credit'

Credit grading by lenders is based on many factors, including a borrower's FICO score, debt-to-income ratio, loan-to-value ratio and past delinquencies. This grade of credit may be associated with a plus or minus for more depth. In this case, a grade of "A+" would indicate higher credit worthiness than a score of "A-".


Additional Resources

  1. Credit And Business Cycles [princeton.edu]
  2. Credit Unions [reic.uwcc.wisc.edu]
  3. Internship Credit [econ.wisc.edu]
  4. Debit Or Credit? Jonathan Zinman , Department Of Economics ... [dartmouth.edu]
  5. Liquidity Traps And Monetary Policy: Managing A Credit Crunch [economics.wustl.edu]
  6. The Impact Of Credit Scoring On Consumer Lending [web.stanford.edu]