Quick interest question!!!

[haulingthescoreup]

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@Walt_K wrote:

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@Anonymous wrote:

thanks everyone for your answers. I understand it a little better now lol but one more thing, if its only $4 a month in intrest why is it a big deal? maybe for higher limit card I supose?

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One way I started looking at this to get my spending in check is that I will spend significant time when I am purchasing something shopping around making sure I am getting the best deal.  But then I was buying things on my credit cards and carrying balances.  What's the point of making sure I save a couple bucks buying it on Amazon if I'm going to carry balances all the time and fork out interest payments every month. 

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A great way of looking at it! Good post.

[Anonymous]

Don't mean to go off topic but, seriously, is a 59%APR legal?????  Is there no law capping interest rates on credit cards?  In my book, this kind of APR is beyond predatory!

[trumpet-205]

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@Anonymous wrote:

Don't mean to go off topic but, seriously, is a 59%APR legal?????  Is there no law capping interest rates on credit cards?  In my book, this kind of APR is beyond predatory!

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There is even a 79.9% APR offered by First Premier at one point. 

http://www.americanbankingnews.com/2009/10/15/first-premier-bankcard-offers-customer-79-9-apr-credit-card/

In Brazil, its credit card can have APR as high as 240%.

And yes, they are legal (despite it being a loan shark).

[thrasher865]

Payday loans are legal in most states with APRs above 300%.

So, 59% APR is a pretty sweet deal! (sarcasm) lol

[Anonymous]

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@Anonymous wrote:
Ok have a first premier card (I know really bad with fees but it's building my credit for now) have a secured card with cap1 also btw. So anyways it has a interest rate of 59.9%.. Is that monthly or annually? So if my balance is $100 owed and I pay $50 I would owe $109.90 next month (59.09 in interest)? Very confused? Any help?

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Hi OP,

Glad you're posting on this - it's a good thing to wrap your arms around, and many rebuilders (unfortunately IMO ) look at FP as one of their options.

In your case, keeping your FP open really isn't doing you any favors in the rebuilding department.

Your secured CapOne is doing you just fine.

So, the interest and annual fee/monthly fees are just money out the window.

If you opened your FP as a builder card, you've already built beyond it when you opened your secured CapOne.

I assume your FP is a short-term card in your mind - in other words you're not planning on keeping it open for a decade or two.  If that's the case, you may as well close it now as later.  Save some cash.  Don't fret about making sure you pay before their outrageous fees are added.  It will still report and impact your AAofA for about ten years after it's closed.