Credit Cards

[Dustink]

I still stand at:

All interest is bad interest.

I also stand at:

A $200 pair of jeans is a waste of money unless it will last 4 times long than a $50 pair, because the look and feel are practically identical. I hope you don't bleach them or stain them.

Your finances are your own, but posting on a forum is a good way to get feedback.

Good luck to you and I wish you the best.

[Lucid08]

To the OP.

Your question was:

What's the Big Deal with APRs?

The majority of members are here because they are looking to improve not only their credit situation/score, but also to learn how to manage their finances better. So consider any responses you have gotten here with that thought in mind.

In order to better manage ones finances, one looks for ways to -save- money, not spend more. Saving money is done regardless of how much income one has, and paying more for something(than is necessary) doesnt fit well with this ideology. The FICO scoring model/algorithym is weighted in such a manner that it is beneficial for someone to have a healthy revolving credit line, so this becomes a goal. The people who have good credit already can get cards with lower interest rates(APR's), but many of us here arent in this position yet, and getting a credit card at all takes a lot of work and planning. Early on, many have to contend with Subprime cards that offer higher APR's and/or annual fees. However, regardless of what your income or credit rating is, getting the best(read: lowest) APR with no annual fee is pretty much the goal.

I've been a member of this forum for about 4 years now, and I cant ever remember seeing a post from anyone who has chosen to pick a higher APR card over one with a lower APR. It just wouldnt make sense to do so.

That is the deal with APR's.

[maiden_girl]

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Dustink wrote:

I still stand at:

All interest is bad interest.

I also stand at:

A $200 pair of jeans is a waste of money unless it will last 4 times long than a $50 pair, because the look and feel are practically identical. I hope you don't bleach them or stain them.

Your finances are your own, but posting on a forum is a good way to get feedback.

Good luck to you and I wish you the best.

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50 dollar jeans? Who wore them? Paris Hilton?

[ccnewcc]

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laboi_22 wrote:

I often see people here slamming cards for high APR. Of course there are those who say "if there are good rewards and you PIF APR should not matter". I also read lots of reviews about credit cards. In particular store credit cards. They are always getting a bad rep for high APRs. Yes they do have high APRs but when you think about it, unless you are carrying a VERY VERY large balance, it's not that bad. I recently obtained the Buckle card because their jeans are expensive, but I love them. I didn't get the card for rewards as much as for the ability to pay in store, in easy to pay installments. For example here is my last jean purchase and how I broke it down:

I knew that my statement period had just begun. I wanted some jeans that were going to cost me $204 with tax. I purchased them:

Before the statement due date (about 25-30 days) I went in store and made a payment of $65 and some change so that I now owe an even $139. I then took out my handy interest calc and here is my payment plan:

month 1: $71,72

month 2: $71.72

I will have paid a total of $4.44 in interest for making 3 monthly payments that are easy to pay right in store, and now I have a pair of amazing jeans to boot! So $4.44 is not that much for me (based on 24.99% APR).

So is $4.44 really that expensive to carry a balance? I don't really mind the extra $4.44. I realize that that amount will take away from the amount of rewards I would have earned, but who cares. I didn't get the card for rewards per say. You can only earn $10 any way per quarter. What does $10 buy you at Buckle? Not a thing!!

Thoughts...

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It took you 2.5 - 3 months to pay off that purchase?

So, why not just save up the $204 plus tax to purchase them when you have the money?  And usually a lot will happen in 2.5 - 3 months in retail..like seasons.  Retail is always out with the old in with the new.  Maybe by the time you saved the $204 plus tax the jeans would have been on sale.

But my real point is:  Why pay ANY Interest?  At all?  If it is $4.44 or $0.01.  Any Interest paid that is more than $0.00 is too much interest paid.

[injustifiiable]

I personally could give a rat's butt about APR considering I pay in full, and even if I did have to pay, it'd be maybe $3 or $4 since my limits are so low.

[laboi_22]

OMG ride this da%& train till it can't burn any more midnight fuel. Wow. Kind of wish the mods would just lock it. OMG that might get a rise out of some people here LOL

[Shogun]

Hello,   just think of it this way.  The hot topic on the forums tonight is YOUR JEANS!  

Anyway, all I have to say on this subject is that you do seem to know what you're doing.  You're not out racking up huge bills and not paying your cards off so I really don't see why this thread has gone anyway.  Wear those jeans with pride!  Strut it out a bit and enjoy them.  From my point of view, you've already gotten your $200 worth out of them.  Good luck!

Oh, and FYI, yes, this thread is being watched.     

[laboi_22]

LOL. Thanks

[bbb3601]

So much bashing going on here lately. I just don't get it. All these perfect people with their perfect lifes, and perfect fico's who PIFevery single month on their perfect cards. Jeesh. What happened to the idea that this site was built to help facilitate positive conversation and help our fellow consumers without judgement?,  Oh that's right none of us ever had bad credit profiles.....I forgot!  My furnace broke last month and I am floating an 800 dollar repair till my bonus.......and yes I can pay in full but I choose not to! Bash away!!

[laboi_22]

Aww you should really be ashamed of yourself. Shame shame. LOL. This thread was not even about what was financed but was undoubtably heavily focused on jeans. Some people don't understand cash reserves, cash floating, etc. the perfect people of myfico I swear.