A-Credit

AAA

DEFINITION of '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.

INVESTOPEDIA EXPLAINS '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-".

RELATED TERMS
  1. Debt-To-Income Ratio - DTI

    A personal finance measure that compares an individual's debt ...
  2. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  3. Mortgage Originator

    An institution or individual that works with a borrower to complete ...
  4. FICO Score

    A type of credit score that makes up a substantial portion of ...
  5. Risk-Based Mortgage Pricing

    Mortgage lenders' offers of different interest rates and loan ...
  6. Balance-To-Limit Ratio

    The amount of money you owe on your credit cards compared to ...
Related Articles
  1. Credit & Loans

    4 Steps To Attaining A Mortgage

    It starts with knowing your choices as well as your price range. We show you how to get there.
  2. Personal Finance

    Understanding Your Mortgage

    We walk through the steps needed to secure the best loan to finance the purchase of your home.
  3. Options & Futures

    Make A Risk-Based Mortgage Decision

    Find out how to choose which mortgage style is right for you.
  4. Credit & Loans

    5 Top Credit Karma Tools To Keep Your Credit High

    As if the free, no-strings credit checkup weren't enough, this site also gives you personalized feedback to make you a better money manager.
  5. Credit & Loans

    How Bad Is My Credit Score?

    You've seen the number, but what does it mean? Here's how to assess your credit score and get to a better place if needed.
  6. Personal Finance

    Understanding Credit

    Credit has three common meanings in the financial world.
  7. Credit & Loans

    Why Credit Karma Is Free & How It Makes Money

    Credit scores originally were built for lenders, but now Credit Karma makes the system work for consumers, too – and makes money at it.
  8. Credit & Loans

    How High Is A 'Good' Credit Score?

    How high a credit score do you need to get a home mortgage or buy a car? Read on for some actual numbers.
  9. Credit & Loans

    Do Credit Inquiries Hurt Your Credit Score?

    There are two types of credit inquiries, but only one can lower your credit score. Learn the difference and act accordingly.
  10. Credit & Loans

    Can I get a balance transfer if I have bad credit?

    Transferring funds from one credit card to another is often possible with bad credit, but it will likely cost you in interest rates.

You May Also Like

Hot Definitions
  1. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  2. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  3. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  4. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  5. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  6. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
Trading Center