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Instead of CLI lets talk about APR.

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Anonymous
Not applicable

Re: Instead of CLI lets talk about APR.

providing you pay the other half the next month of course lol
Message 21 of 27
NRB525
Super Contributor

Re: Instead of CLI lets talk about APR.


@Anonymous wrote:
plus if you have to purchase something and get 1% cash back but you can't pay it all that month but can pay half of it and your APR is 12% then you still came out slightly ahead.

This is true, but having a lower APR (or a promotional APR of 3%) gives one the option to regard the card as either a rewards card or as a low APR card for certain time periods.

 

With points, airline miles, etc, one still gets those points accruing, so you don't lose those. If the cardholder was going to carry a balance on a purchase anyway, then they were going to pay interest to a bank anyway as well. The fact that both those occur on the same card (earn points and pay some interest for some number of months) doesn't negate the advice to get the lowest APR you can on the card, and getting the points on a purchase you plan to pay interest on is still a good thing.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 22 of 27
Anonymous
Not applicable

Re: Instead of CLI lets talk about APR.

i know. we are in agreement and it feels you think i am going against you lol. i was totally in agreement with you and expanding on the topic..
Message 23 of 27
Anonymous
Not applicable

Re: Instead of CLI lets talk about APR.

That is how I do my Ebates gamble.  Portal plus a  decent 3 percent off a $900 purchase but have to carry the balance?  it's okay because you don't pay 36 percent interest,  its bad but not first premierbad

Message 24 of 27
Anonymous
Not applicable

Re: Instead of CLI lets talk about APR.

To DaveinAZ:

 

I konw that 20.99 is still bad for APR, but I was just happy it went down at all.  I also never carry a balance and PIF, but what happens if one day something big happens and I need to carry a balance for a couple of months?  Hence my asking about this, I have not carried a balance once since I seperated my finances and started doing my own bill paying several years back. 

 

I just want to know what is possible with different lenders and it appears as so many of us, me included, PIF that APR is not thought about much.  That is fine, but I want my card to truly be as good as possible and having a 20k limit with a 24.99 APR might not be as useful for some people as a 5k limit at 7.99 for example.  I just figured as I work my CLI it would be nice to know if APR was workable too.

 

My mother in law will not even look at a card with a 20% intrest rate, it does not matter that she also PIF, she said she tears up any offer over 20% regardless of the lender, reward program or anything.  I mentioned using rewards cards, the quicksilver, and she said "oh that super high APR card, they keep sending it to me but I tear it up as who would ever want a card with that high a rate!?"  She never even considers the rewards because of the APR.  Odd, but maybe if there was hope of lowering APR in the future she would consider one.  Just seems like good info to know.

Message 25 of 27
dbatl14
Contributor

Re: Instead of CLI lets talk about APR.

I found it extremely difficult to get a lower APR. What I have seen for myself is that I guess they look at it as a deterrent to keep large balances and subliminal make you pay it off fast. Especially with Cards that do not charge AF.

 

I think their algo for that is very different. I mapped it out in my head like this (this is simply my own experience and from what I have seen)

 

NO AF - Low APR = Excellent credit, high spend each month, PIF

NO AF - High APR - Decent CL = Average credit, decent spend, carries balance mostly, but pays more than min.

AF - High APR - Low CL = =< Average credit, keeps balance all of the time, pays min.

 

Then I think it depends on the lender, the lowest APR I have in my wallet is Amex Everday for 12.99 anything else it upwards from 17.99 to 26% (the higher APR are usually from Synchrony Bank, I never carry a balances ever unless they do the promo thing at Amazon where you get 6, 12, 24 month 0% interest). Credit Union's seem to be better on the APR side as well versus bigger bank.

My Wallet: Amex Everyday: $7000 | Amex PRG: NPSL | AMEX Business Reward: NPSL | Amex Hilton Aspire: $9300 | Amex Delta Gold: $15000 | Amex Business Plat: NPSL | BofA Cash Rewards: $22000 | Travel Rewards: $15000 | NASA FCU Advantage: $17,500 | DCU Platinum: $5000 | Barclaycard Rewards: $3500 | Capital One QS: $8500 | Capital One Platinum: $2250 | Capital One Spark: $7500 | Fidelity Bank: $3400 | Nordstrom: $16500 | Macys: $10000 | Walmart: $3300 | Amazon: $6000 | Target: $14500 | | Chevron/Texaco: $3000 | Discover IT: $4700 | Apple Card: $2450 | Citi Double Cash: $4000
Message 26 of 27
wacdenney
Valued Contributor

Re: Instead of CLI lets talk about APR.


@NRB525 wrote:

@wacdenney wrote:

The reason this topic never gets much traction is because most people only have one or two cards in their portfolios designed for carrying balances and the options are really pretty cut and dry and obvious.  If you have a current 0% offer going then you park your balance there and if not you go with a credit union card or a product like Ring.  If your portfolio doesn't contain a card designed for carrying a balance then you should get one.

 

APRs on rewards card really aren't relevant because you would never carry a balance on those cards.  If you do then you are negating any reward value.  I have no idea what the APR even is on the vast majority of my cards because it's not relevant.

 

What's the APR on your rewards cards?  IT DOESN"T MATTER!!

 

 


It actually does matter, it's a good idea to try to get all cards with reduced APR where you can.

 

Case in point: AMEX runs 12-month APR promotions where they will take their three APR rates, and lower them to three lower APR. The Holiday rate promo from November 2014 took 19.24% --> 6.99%, 17.24% --> 4.99%, and 15.24% --> 2.99% on all new purchases and carried balances. Another round of similar promos was run earlier this year on a different set of AMEX cards.

 

The main thing is, each lender and each card can be different about what is possible, so it's best to ask, particularly if scores have improved and the SP is likely to show that. Lenders use APR as a reflection of risk. Higher FICO score is a reflection of reduced default risk. The cost to carry a balance for a month at 12% is much better than at 24%.


AMEX doesn't really offer any cards designed for carrying balances on and even at ~3% you are largely negating any rewards you have earned.  Even on BCP for groceries you still wouldn't choose that card to park a balance on.

Message 27 of 27
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