A few questions about APR

[Renae156]

I get to a point where I think I've figured things out when it comes to credit and then another question comes to mind...

I'm wondering what the biggest factors are in determining APR. For example, do ccc's weight overall score or age of accounts more heavily when determining your APR? Another question, can my APR change over time? I know that you can ask for a reduction but can it increase due to high balances etc? And finally, are some ccc's known for having better rates than others? I currently have a Cap1 with around 20% APR (i never carry a balance on this so it hasn't mattered) and an Amex revolver at 13.99 after my 0% intro. These rates are not even close so I'm wondering how they were determined...

Any insight would be appreciated! Thanks!

[trumpet-205]

APR is determined by your creditworthiness, just like CL. It takes into account of everything on your credit report. There is no single isolated factor that determines it.

APR is made of prime rate and margin rate. Prime rate is a published rate that can change throughout time, though for quite sometime it stucks at 3.25%. So if prime rate goes up, APR goes up too. Lenders used to be able to increase margin rate, but new regulation prevents it. Now days, margin rate only goes up if you become deliquent (late, returned payment, and over credit limit on non-NPSL card).

[Renae156]

Thank you! That's probably something I should have picked up in a finance class somewhere along the way but the refresher was appreciated!

Anybody know if certain ccc tend to offer lower APR ? I'd like to have the option to carry a balance while traveling and want to make sure I have the lowest APR possible, just in case  

[trumpet-205]

So far in my experience AMEX and Bank of America (FIA Card Service) are willing to lower APR if you maintain good status. 

My AMEX BCP went from 17.24% --> 14.24% --> 11.24%.

My closed BofA Travel Rewards went from 20.99% --> 12.99%. My existing BofA BBR went from 21.99% to 18.99% after 6 months from opening date.

Had no luck with Chase and Citi.

[youngandcreditwrthy]

Ive had Amex lower APRs as the op mentioned from 22.24 to 19.24.

BOA constantly offers 0% offers (sometimes I think these offers are just best all around.)

Discover offers lowers purchase APRs too on a temporary basis usually. for ex: 1.9% for 6 months.

[Renae156]

Thank you both for the info! 

[user5387]

Beyond creditworthiness, there are also considerations around (1) rewards, and (2) profit.

For example, many CU (non-profit) cards come without rewards, but have APRs in the 7-9% range, and no fees for transactions like balance transfers and cash advances.

I myself have been eyeing the SDFCU Visa with its 6.99% APR.

Another nugget of information from CUs is that some of them have tables that list score thresholds for various APRs, and the best APRs tend to start around 740.

[pip3man]

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@trumpet-205 wrote:

So far in my experience AMEX and Bank of America (FIA Card Service) are willing to lower APR if you maintain good status. 

My AMEX BCP went from 17.24% --> 14.24% --> 11.24%.

My closed BofA Travel Rewards went from 20.99% --> 12.99%. My existing BofA BBR went from 21.99% to 18.99% after 6 months from opening date.

Had no luck with Chase and Citi.

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Citi lowered my APR from 21.99% down to 18.99% (I know it's not alot but I'll take it). Just had the account opened for 3weeks as of the time of the APR reduction. I made my request via online chat and they approved it immediately so I strongly think it's a case of YMMV