High Interest Rates :(

[RhubarbPie]

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@09Lexie wrote:
@RhubarbPie

I agree with you regarding spend what you can afford. However, I believe the OP was inquiring about high interest rates and his/her age being a factor. Like you, I do not pay interest but at the same time each time I ask for a CLI I also ask for an APR reduction. Too often, we discuss interest rates and who's offering the best terms. Is it unheard of that an 18 year old would be as concerned? I commend OP for being knowledgeable and being concerned with int rates.

Right, but if you look at the quote below, the OP is talking about his frustration about not being able to spend more than he can pay, or inability to utilize more credit than he can afford because of "how much it would cost". Doesn't sound like the OP is just interested in being informed about the interest rates on the card for his own personal edification.

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@snowsurf7 wrote:

It makes me so semi-mad because I have credit cards that I really can't use the credit portion of because of how much it would cost.

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[-HighScoringGame-]

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@09Lexie wrote:
@RhubarbPie

I agree with you regarding spend what you can afford. However, I believe the OP was inquiring about high interest rates and his/her age being a factor. Like you, I do not pay interest but at the same time each time I ask for a CLI I also ask for an APR reduction. Too often, we discuss interest rates and who's offering the best terms. Is it unheard of that an 18 year old would be as concerned? I commend OP for being knowledgeable and being concerned with int rates.

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+1

I'm a student using my credit cards to pay for school as I go, one semester at a time. So I will finish school COMPLETELY debt free instead of having a huge student loan balance. There's absolutely nothing wrong with doing it that way if one manages their debt appropriately. It's great to see a young person concerned with both limits AND interest rates. So many don't think about the interest that's racked up on balances that continue to revolve over long periods of time. Sometimes one does need to carry a balance. Things happen. Having a low APR helps in such instances. In the absence of that, OP, it's best to make a plan to pay off balances quickly so as to pay as little interest as possible. You are doing well, OP. Be encouraged. 

[09Lexie]

@RhubarbPie

What I interpreted the OP to mean, that due to the high APR they could not carry any balance. So even at the acceptable 10% util, that would even be a problem. Therefore, they are at 0% util.

[enharu]

Well, having a low interest rate is going to help regardless of whether he decides to carry a balance.

If an emergency does crop out one day and he is forced to revolve a balance on the credit cards, at least the "lower" interest rates isn't going to make his life a lot more miserable than it already is.

to OP: Indirectly it is due to your age. While creditors are not allowed to discriminate based upon age, you have a thin file because you're still young. Keep those accounts in good standing for 6-12 months, and then call them to have your APR lowered. Most of them should do it, though it might require a hard inquiry in the worst case scenario.

[youngandcreditwrthy]

@rhubarb pie: I'm scared that you don't have the sense to keep track of your interest rate(s).

What if you lose all of your assets or get sued? Have a medical emergency? One "emergency" can cause bankruptcy. Unfortunately, the higher the interest rate, the more likely you are to file BK....
I'm glad I started when I was 18. Kudos to the op!

[navigatethis12]

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@youngandcreditwrthy wrote:
@rhubarb pie: I'm scared that you don't have the sense to keep track of your interest rate(s).

What if you lose all of your assets or get sued? Have a medical emergency? One "emergency" can cause bankruptcy. Unfortunately, the higher the interest rate, the more likely you are to file BK....
I'm glad I started when I was 18. Kudos to the op!

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Most people will have some amount of savings put away somewhere so that if something happens, it won't hurt them financially. If credit cards are your emergency bailout, then something is wrong with your finances. I am also not sure where the remark about the higher interest rate and more likely to file for bankruptcy comes from. Bankruptcy is not anywhere in my future and I usually get higher interest rates.

If people want lower rates, don't look at rewards credit cards. Get a card like the Barclay Ring or Simmons First or something similar that is made to carry balances on. There are rewards cards with low rates, but they are rare.

[boomhower]

If your score is good go get a DCU card.  Their rates are strictly by credit score.  If your score is good the rate will be low.  You can't expect a low rate just by making eight payments on time.  Your looking at 720+ to get the low rates.  And even then it's not always going to happen.  With a 750+ score I got 8.5% from DCU but Chase still shot me with 18% on a Slate. 

[snowsurf7]

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@RhubarbPie wrote:

These threads are so scary, especially from 18 year olds. Not to be preachy, but why would you purchase more on your credit card than what you have to spend in your bank account (and actually, it goes without saying that you should purchase less than what you have in your bank account)? I don't really understand. Are you having a major medical emergency? Did some horrible tragedy occur forcing you to pay large sums of money for emergency goods and services on a credit card?

I've never looked at the interest rate on any of my credit cards. I couldn't tell you what it is for any of them. Because I've never accrued interest on a credit card ever (not even a penny of interest).

I think you are confused about the purpose of a credit card. The "credit portion" of a credit card should not function as a means to rack up debt and then pay it off monthly with interest, regardless of the interest rate (although, those are the consumers that make the credit card companies money). It is a way to pay for something without cash, or when cash is not convenient. Additionally, most credit cards offer certain rewards, benefits and protections which would not be present had you used cash. If you need a loan because you are a student, or you are having a medical emergency, or you are experiencing unfortunate unforseen events in your life which are incurring unplanned expenses, please do yourself a favor and walk over to the bank and get a legitimate loan with a normal interest rate.

Otherwise, spend what you can afford, and interest rates will be a non-issue in your life.

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I wasn't planning on racking up debt at all. Its just one of those things that I would rather have. A lot of ficoers probably dont't need a 25,000 dollar limit but its sure is nice

[snowsurf7]

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@RhubarbPie wrote:

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@09Lexie wrote:
@RhubarbPie

I agree with you regarding spend what you can afford. However, I believe the OP was inquiring about high interest rates and his/her age being a factor. Like you, I do not pay interest but at the same time each time I ask for a CLI I also ask for an APR reduction. Too often, we discuss interest rates and who's offering the best terms. Is it unheard of that an 18 year old would be as concerned? I commend OP for being knowledgeable and being concerned with int rates.

Right, but if you look at the quote below, the OP is talking about his frustration about not being able to spend more than he can pay, or inability to utilize more credit than he can afford because of "how much it would cost". Doesn't sound like the OP is just interested in being informed about the interest rates on the card for his own personal edification.

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@snowsurf7 wrote:

It makes me so semi-mad because I have credit cards that I really can't use the credit portion of because of how much it would cost.

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I was talking about emergency's! Car breakdowns etc not going out to H&M and buying up the whole store LOL

[snowsurf7]

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@boomhower wrote:

If your score is good go get a DCU card.  Their rates are strictly by credit score.  If your score is good the rate will be low.  You can't expect a low rate just by making eight payments on time.  Your looking at 720+ to get the low rates.  And even then it's not always going to happen.  With a 750+ score I got 8.5% from DCU but Chase still shot me with 18% on a Slate. 

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i'll think I hold off a little on applying. only becuse of my inquires and new accounts, need to let those suckers age a little (a lot). DCU is on my list though as well as PenFed...eventually