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CL & APR

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Skye12329
Valued Contributor

CL & APR

I don't understand the logic. So its been said larger limits beget larger limits. If that were the case I should still be stuck with limits less than 1000. But that's not the case. Because before all of my big cards my largest limit used to be 1300(Sears). So can someone explain how that's true? Because to me its all based on report and income not average limits. Just my thought.

As for APR how does one get the lowest? Also if you get the lowest shouldn't you get a great APR also? Because it would mean you have great credit but I have seen friends get tier 1 or the lowest APRs but like lower limits than their average. Like their report is excellent and have decent income...etc. But its like you either get a great limit or a great APR it seems. I'm not saying that for everyone just what I have seen. But how do you get an amazing APR?
BK7 - 2/21
Cap1 QS - 2k (4/21)
Mission Lane - 4k (11/21)
Venmo - 900 (11/21)
SavorOne - 2500 (12/21)
VentureOne - 2000 (7/22)
Message 1 of 12
11 REPLIES 11
UncleB
Credit Mentor

Re: CL & APR


@Skye12329 wrote:
I don't understand the logic. So its been said larger limits beget larger limits. If that were the case I should still be stuck with limits less than 1000. But that's not the case. Because before all of my big cards my largest limit used to be 1300(Sears). So can someone explain how that's true? Because to me its all based on report and income not average limits. Just my thought.

As for APR how does one get the lowest? Also if you get the lowest shouldn't you get a great APR also? Because it would mean you have great credit but I have seen friends get tier 1 or the lowestAPRs but like lower limits than their average. Like their report is excellent and have decent income...etc. But its like you either get a great limit or a great APR it seems. I'm not saying that for everyone just what I have seen. But how do you get an amazing APR?

I agree; sometimes their logic just doesn't make sense... and sometimes it doesn't seem like logic at all.  It truly seems that once one lender 'takes the plunge' and trust a customer with a high limit, after a bit other lenders say to themselves, "well, 'old John is doing OK with that big limit Chase gave him, so I guess it's safe for us to give him a big limit as well..."  It's almost like a 'measuring contest' between the lenders at some point... LOL. 

 

As for APRs, that has always irked me a bit.  With two six year-old collections I already know I'm not going to get the best rates, but even years ago when I had a 'clean' report I never got the lowest rates.  This makes me think they are a bit like car salesmen... they advertise in the newspaper that they have cars on sale for $10K, knowing very well that on their lot of 500 cars they only have two that can be sold for $10K, with all the others significantly higher.  The whole 'low APR' thing is similar to me; a bank might advertise "APR from 6.99% to 22%", but to get that 6.99% not only do you have to have perfect credit, you need perfect utilization (not to high or too low), exactly no inquiries, an income over $300K, and your zodiac sign must be the same as the wife of the bank president. 

 

I have to admit after going through years of having high balances at APRs that would make the mafia blush, I'm a bit funny when it comes to the APR on my cards, even though I almost never carry a balance (unless I'm on a 0% promo).  This is why I just can't bare to get a Freedom; they send me multiple pre-approval letters each month, but at 22.9% I just can't do it, even though I would pay it off monthly anyway.  I know in the big picture this is silly, but I can't help it.  It's similar to my grandparents who hoard things now because they still have memories of being without during the depression; I still have memories of revolving high balances at 29.9%.  Never again! 

 

When you get an answer as to how to get an ultra-low APR, let me know.  I know I'm not eligible now anyway, but I still would like to know how it's done!  Smiley Happy

Message 2 of 12
TiggerDat
Valued Contributor

Re: CL & APR

No matter what APR they start you out with, you can always ask them to lower it at a later date.  I have been successful with that on more than one occasion.  On a Comenity card that I have, I have the lowest APR they offer.  Which isn't really that low, since it is Comenity and a co-branded card.  The rate is 16.9%, so not really that low.  I have gotten CapOne to lower the APR, FNBO to lower the APR, Barrclay has too, and I think one other.

 

I usually PIF each month, so that might be a reason they are willing to do so.  However, I think FNBO, which my neice has a balance transfer on at 5.9 or 3.9%, also lowered my rate while the balance was there.

It is by will alone I set my mind in motion.....
Always follow these rules: Only take a HP for a new account. Always use the best rewards card for that reward category. Don't close a card unless you know you really should. Never use more than 35% of a credit limit. Recon as much and as best you can. Use the introductory period to the best advantage. Get the signup bonus. Whenever possible PIF or balance transfer so you pay less in interest. Never give an excellent rating when it is actually the norm. Always look for a discount as more is always better.
Always accept candy from strangers because they have the best candy or from people you know have good candy.
Message 3 of 12
newhis
Valued Contributor

Re: CL & APR


@Skye12329 wrote:
I don't understand the logic. So its been said larger limits beget larger limits. If that were the case I should still be stuck with limits less than 1000. But that's not the case. Because before all of my big cards my largest limit used to be 1300(Sears). So can someone explain how that's true? Because to me its all based on report and income not average limits. Just my thought.

As for APR how does one get the lowest? Also if you get the lowest shouldn't you get a great APR also? Because it would mean you have great credit but I have seen friends get tier 1 or the lowest APRs but like lower limits than their average. Like their report is excellent and have decent income...etc. But its like you either get a great limit or a great APR it seems. I'm not saying that for everyone just what I have seen. But how do you get an amazing APR?

Yes, larger limits beget larger limits, but that's not only the only factor. You can start with 1-2 cards at $500-$1000 and in 6-12 months there will be some lenders that can give you $3,500-$5,000, but it will be hard to get $10,000+ from only having $500-$1,000 cards. So time always helps on the 'credit game'. Then comes the lender that gives $15,000 to someone with only 1 card above 5k (at $6,000) for only a few months.

 

As for APR I think time since last app and use of cards help getting the best APR. I tried some pre-qual sites for a few months and I started at 20%, then 18%, then 15%. I think 5 months since last app and without any other HP, I got Venture at 12.9% (2 weeks before my app they offered around 18%). Of course there is something else, there are many things they take to feed the algorithm.

Message 4 of 12
TiggerDat
Valued Contributor

Re: CL & APR

I just got 3 more APRs reduced because of your thread.  I will try for more reductions tomorrow.

 

Remember, regardless of what it starts out at, many banks will either lower it upon request if you meet some qualifications or some will reduce iton their own.

 

 

Everyone should ask, even if you PIF each month. 

It is by will alone I set my mind in motion.....
Always follow these rules: Only take a HP for a new account. Always use the best rewards card for that reward category. Don't close a card unless you know you really should. Never use more than 35% of a credit limit. Recon as much and as best you can. Use the introductory period to the best advantage. Get the signup bonus. Whenever possible PIF or balance transfer so you pay less in interest. Never give an excellent rating when it is actually the norm. Always look for a discount as more is always better.
Always accept candy from strangers because they have the best candy or from people you know have good candy.
Message 5 of 12
newhis
Valued Contributor

Re: CL & APR


@TiggerDat wrote:

I just got 3 more APRs reduced because of your thread.  I will try for more reductions tomorrow.

 

Remember, regardless of what it starts out at, many banks will either lower it upon request if you meet some qualifications or some will reduce iton their own.

 

 

Everyone should ask, even if you PIF each month. 


+1. I was able to lower by BoA 4% and Discover 2%. Chase was a no-go.

 

OP, about APR, Cap1 pre-qual site now is giving me 17.9% again, I guess that is because they see the HP and new account from them. I bet they will give me a better APR in a few months.

Message 6 of 12
chalupaman
Super Contributor

Re: CL & APR


@Skye12329 wrote:
I don't understand the logic. So its been said larger limits beget larger limits. If that were the case I should still be stuck with limits less than 1000. But that's not the case. Because before all of my big cards my largest limit used to be 1300(Sears). So can someone explain how that's true? Because to me its all based on report and income not average limits. Just my thought.

As for APR how does one get the lowest? Also if you get the lowest shouldn't you get a great APR also? Because it would mean you have great credit but I have seen friends get tier 1 or the lowest APRs but like lower limits than their average. Like their report is excellent and have decent income...etc. But its like you either get a great limit or a great APR it seems. I'm not saying that for everyone just what I have seen. But how do you get an amazing APR?

All depends on which bank you're dealing with, but at the same time, I think having thicker files tends to help and good payment history on those cards in which you're trying to get the lower APRs on. 

Tradelines: Macy’s - $18k, Penfed Power Cash Rewards - $10k, Ethan Allen (TD Bank) - $5.7k, Kay Jewelers - $5.5k, Appliances Connection - $5.3k, Jared - $5.25k, Best Buy (Citi) - $5k, Dell Preferred Account - $3.5k, Samsung - $3.2k, Firestone CFNA - $3.2k, Capital One Platinum - $3k, Mercury MC - $2.25k, Williams Sonoma - $2.1k, Wayfair (Fortiva) - $2k, Amazon Store Card - $1.8k, Apple Card - $1.7k, NFCU cashRewards - $1.5k, CareCredit - $1.5k, B&H Photo - $1.5k, Adorama - $1.25k, Ebay MC - $1k, Sam’s Club MC - $1k, American Eagle - $1k, Ollo MC - $600, Mission Lane Visa - $500, NY & Company - $500, Walgreens - $500, Home Depot - $500, Target RED Card - $500, CapOne Secured MC 0 AF - $500, Penfed Overdraft LOC - $500

Current FICOS: Mid 640s-50s on all reports, Ch 7 BK D/C Aug 2019
Starting scores: EX - 534, EQ - 574, TU - 516 | Total TLs: $91k approx | Total Utilization: 17%, getting this back down
Message 7 of 12
Anonymous
Not applicable

Re: CL & APR

My first card was that 22.99% Freedom you're talking about, with a $1.2k limit. I'll try to lower it when the 0% intro runs out. Since then, I've gotten a 12.9% BCP with a $6k limit. I got the Freedom in December, two other cards in January, and the AmEx in June so it's certainly possible with a thin, clean profile.
Message 8 of 12
kdm31091
Super Contributor

Re: CL & APR

Dont even bother asking with Chase. They do not and will not lower APRs. The only way to get a lower APR with them is to cancel and then reapply which is probably not worth it.

So yeah, not every lender is flexible about it, but some are.
Message 9 of 12
jim44
Established Contributor

Re: CL & APR

IHO I think too it has to do (of course) with the lender's guidelines and then interpretation of the individual CA.  Some of you may remember 10 years ago prior to the recession and the real estate bust when lenders where handing out loans and ccs like candy.  My first card in 1994 was a Citibank thank you with a 19.99% interest and a $500 credit limit. 10 years later my regular apr was 9.9% with a promotional apr of 1.2% for the life of the promotion and the CL was at 17k.  Having a card with anything more than 15% and a CS in the 700's was extremely rare. Back then lenders were more cooperative with reducing APR's.  The whole credit climate has changed dramatically where moderate CL and APRs upwards past 19.99% are more common especially for those with less than steller credit.  JM 2 cents. Smiley Happy

Message 10 of 12
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