What is a (PQB) Perfect Qualified Borrower?
​​
A Perfect Qualified Borrower for a bank or credit card issuer is an individual who demonstrates financial responsibility, stability, and low credit risk. This borrower meets or exceeds the following criteria:
​​
1. Strong Credit Profile
-
Credit Score: 750+ (Excellent category)
-
Credit History: At least 7+ years of responsible credit use or Its Credit History Equivalent
-
Payment History: 100% on-time payments with no delinquencies, charge-offs, or bankruptcies
-
Credit Utilization: Below 10%, indicating responsible credit management
​​
2. Stable Income & Employment
-
Employment: Full-time employment or consistent self-employment for at least two years or Corporate Control of an entity older than two years.
-
Income: High and stable, well above the minimum requirement for loan or credit approval
-
Debt-to-Income Ratio (DTI): Below 30%, indicating a strong ability to manage debt without financial strain.
​​
3. Low Credit Risk
-
Minimal Hard Inquiries: Fewer than 2-3 in the past 12 months, showing responsible credit-seeking behavior
-
Diverse Credit Mix: A healthy mix of credit types (credit cards, loans, mortgages) with a solid repayment history
-
Low Outstanding Debt: No excessive balances or maxed-out credit lines
​
4. Strong Banking Relationship
-
Long-Term Account Holder: Multiple years with the financial institution or its Corporate equivalent.
-
Consistent Savings & Cash Flow: Regular deposits, strong account balances, and minimal overdrafts
-
History of Responsible Credit Use: Previous successful loans or credit accounts with the institution
A borrower meeting these criteria represents a low risk, high-value customer for banks and credit card issuers, making them eligible for higher credit limits, premium financial products, and the best interest rates available.