Lower Your APR!

[NoNonsense]

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@xerostatus wrote:

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@NoNonsense wrote:

My PRECISE writing includes words like "FOR MOST PEOPLE" or LIKELIHOOD which are very different from saying that what I am about to say applies to EVERYBODY.  

Evidently, SOME people have problems reading PRECISE writing.

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It is not entirely accurate, even to say "most" people.

It's not "most" people, perhaps not even "some" people.

I would surmise, just from experiential/anecdotal evidence, that "most" people (both here on the forums and in my social/family circles) generally have decent/good credit, and that "most" people here on the forums tend to have have higher limits and/or low APRs (stemming from the aforementioned good credit practices), and hence "most" people seem to responsibly handle those two conditions perfectly fine. 

Again, I'm using your words, not mine. I think "most" people handle it just fine.

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Well, that's not how I see it.  And I can't, obviously, speak about your world.  I move in very wide circles and I do pay attention to how people behave, as part of my work, and routinely receive third-party reports about it and what I state is consistent with it... at least in non La-La Land...

[RushXTC]

I've only been doing my Bank of America Cash Rewards every 6 months, Because most of my cards are new and still on 0% Promo.

I'm about to do BoA again next month.

[irrational]

Interesting talking points. It looks like a lot of compelling thoughts have allready been outlined.

Just to outline my 2-cents; I don't pay any attention to APR, as I have zero plans on carrying a balance - with the small exception of my Home Depot card, which I specifically got for all those wonderful 0% promos they run. Short of that, I always PIF and am more interested in rewards (cashback) and credit limit than I am APR.

IF I was interested in carrying a balance, from what I've read, CUs are some of the better lenders. I see my CU offers a 9% APR card, and I've read of others with even lower APRs. Perhaps this is more fruitful than asking BoA, Citi, Amex, et al to lower their rate?

[red259]

Lowering your APR can be a good practice. Just because you obtain a lower APR does not mean your going to be more inclined to carry a balance. Its rarely a good idea to carry a balance. I view lowering an APR to be a safety net for those rare situations where you may have a tight month or have a larger than average purchase that is time sensitive and you have to carry the balance one cycle. For example, if someone is an independant contractor and their client does not pay out the reimbursements in time before the credit card bill is due. 

[primechicken]

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@Brax wrote:

APRs just don't change much anymore so that could be part of the problem why it isn't discussed very much (believe me, I wish there was more mention of APRs, especially in App Approvals). I think it's extremely important, even if a balance will never be carried. Lower APRs should in theory match a lower credit risk profile.

Chase will not lower APRs, ever. Their APRs are permanently priced in with your credit risk at time of approval. The only recourse I believe is to close and re-apply hoping for a better APR (iffy) or opportunistically wait for some sort of Chase pre-screened offer that discloses a pre-determined APR. (I did this with the Ink Plus to get a 13.24% APR, which is lower than what is publicly offered)

BoA, Discover, and Amex seem to be the best at lowering APRs. Citi and Barclays are possibly OK. US Bank and Capital One are very unlikely, only promotional/temporary. Chase is definitely impossible.

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Got my CapOne Quicksilver APR dropped 4 pts a couple weeks ago. Executive office been good to me. It was once a Platinum credit builder's card with a 500 limit. Try em. 

[barbaralee]

I would not hesitate to call and lower my APR if I was carrying a balance, or thinking that I may possibly have to carry one... But since I am not, and have not for years now I think that strategy is left for another day. I am not the type to call my card company for funsies to see if I could get a limit increase, or lower the APR, or ask anything of them that I can just as easily google. Even if it is just a few minutes, I could spend those minutes doing something a lot more entertaining than talking to some poor rep who really does not want to be talking to me. 

Now if I was carrying a balance then yes... I would be quite persistent in asking for an APR decrease.

[longtime_lurker]

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@barbaralee wrote:

I would not hesitate to call and lower my APR if I was carrying a balance, or thinking that I may possibly have to carry one... But since I am not, and have not for years now I think that strategy is left for another day. I am not the type to call my card company for funsies to see if I could get a limit increase, or lower the APR, or ask anything of them that I can just as easily google. Even if it is just a few minutes, I could spend those minutes doing something a lot more entertaining than talking to some poor rep who really does not want to be talking to me. 

Now if I was carrying a balance then yes... I would be quite persistent in asking for an APR decrease.

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Some reps really enjoy their jobs, and my rep this morning at Discover was so nice we got into talking about MSU basketball and how he misses College days... lol. I really think if you approach them personably, you get radically different results. Was I upset at the starting APR Discover gave me (17.99)? Yes. While he couldn't move it, he did tell me to keep an eye out for something in the mail to be sent to me...haha I'm hoping it's a $5 gift card to my darling Starbucks...

Regardless, it was a pleasurable experience, for me at least (and I have to think for him as well). He was probably happy he didn't get some whiny, screaming lunatic.

[barbaralee]

 I approach reps the way I would want to be approached, and as pleasant and courteous that they or I may be that doesn't diminish the fact that call center work is tedious. I only have to make a few calls a day, but it is the least pleasurable part of my job... Gotta put your game face on, though.  

 I live in a city that hosts one of Discover's call centers. Quite a people in front office where I work came from Discover and I often wonder what kind of training they put them through; from my understanding the benefits are not that great and I know the pay is very low. They do have a revolving door when it comes to their representatives, but I have heard they are not that bad of an employer.

[DigitalArk]

I don't really think about APR since I PIF with all my cards. Lowering APR does not affect me at all.

[sunkissed]

I am climbing my way back up the credit ladder.  This forum has helped me tremendously in my quest.  However, it was frustrating at times to see approvals with every stat and profile detail under the sun except for APR at approval.

I understand that many folks here have a PIF always mentality.  I also believe in never paying interest if I can help it and similarly PIF always.  I also believe that it is in my best interest to try for the best terms – and that includes APR.  It costs me a phone call or secure message to ask, nothing more.  If I’m successful at shaving off a couple of percentage points, I could save money in the event I ever need to carry a balance.  No one plans for tragedy to happen.  If I had an emergency and needed to charge something I couldn’t PIF by the end of the month I don’t want to compound my distress by fretting over a 19% APR!  Additionally, being in the middle of a crisis is probably the worst time to have to call a lender to negotiate better terms.

Everyone will choose their own strategy.  I will seek lower APRs whenever possible.

Thank you bernhardtra for starting this conversation!