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Frequent Contributor
Posts: 285
Registered: ‎03-29-2008
0

looking for a low-interest card

I am likely taking a 1-year sabbatical, starting in August '10. I may have to build up some credit card debt, since student loans will not likely cover my tutition, plus the cost of having 3 children and a wife (who works thankfully). This sabbatical is unpaid. I will, of course search for better options than credit cards, but if I need to rely on them, I will do what I have to do knowing that I will have a good-paying job at the end of the sabbatical.

 

Right now, I have a DiscoverCard with $11,000 CL, 2 Chase Cards w/ combined limits of about $10,000, Capital One $7,500, BofA $8,000. I also have a Credit Union CC but I don't want to use it because it is joint with my father, and I just keep it for credit history purposes. 

 

My score should be between good to excellent - a few baddies over 5 years ago (but not 7 years ago), and no credit card debt. The bad news is those baddies from many years ago have caused those interest rates to be default rates, but my newer cards are better. I had a great Capital One 7.9% until the Obama legislation, so now it is bad too. In case I need to use credit cards, I want a low-rate card at my disposal for the next year.

 

I am writing because I want a credit card with less than 10% interest. I see a Simmons option, are there others? (No interest in rewards, I have good cards for that)- and am I better off applying for a low-interest card now, or waiting until the Obama legislation actually takes effect. 

 

Thanks!

Regular Contributor
Posts: 204
Registered: ‎02-19-2008
0

Re: looking for a low-interest card


 

 I had a great Capital One 7.9% until the Obama legislation, so now it is bad too.


I find it interesting that you believe the Obama legislation has something to do with your higher interest rate on your credit card. Check with his predecessor.

Moderator
Posts: 17,419
Registered: ‎07-14-2009
0

Re: looking for a low-interest card

Just a friendly reminder that the FICO Forums TOS prohibit among other things:

 

 

Discussions including race, nationality, sex, religion, politics;

 

Frequent Contributor
Posts: 285
Registered: ‎03-29-2008
0

Re: looking for a low-interest card

I blamed the legislation, not the man. I should have not mentioned his name.
Frequent Contributor
Posts: 285
Registered: ‎03-29-2008
0

Re: looking for a low-interest card

Regarding TOS, I will avoid any mentioning of politics and legistlation from here-on-out! Sorry.
Super Contributor
Posts: 5,759
Registered: ‎01-28-2008
0

Re: looking for a low-interest card


ace9848 wrote:

I am likely taking a 1-year sabbatical, starting in August '10. I may have to build up some credit card debt, since student loans will not likely cover my tutition, plus the cost of having 3 children and a wife (who works thankfully). This sabbatical is unpaid. I will, of course search for better options than credit cards, but if I need to rely on them, I will do what I have to do knowing that I will have a good-paying job at the end of the sabbatical.

 

Right now, I have a DiscoverCard with $11,000 CL, 2 Chase Cards w/ combined limits of about $10,000, Capital One $7,500, BofA $8,000. I also have a Credit Union CC but I don't want to use it because it is joint with my father, and I just keep it for credit history purposes. 

 

My score should be between good to excellent - a few baddies over 5 years ago (but not 7 years ago), and no credit card debt. The bad news is those baddies from many years ago have caused those interest rates to be default rates, but my newer cards are better. I had a great Capital One 7.9% until the Obama legislation, so now it is bad too. In case I need to use credit cards, I want a low-rate card at my disposal for the next year.

 

I am writing because I want a credit card with less than 10% interest. I see a Simmons option, are there others? (No interest in rewards, I have good cards for that)- and am I better off applying for a low-interest card now, or waiting until the Obama legislation actually takes effect. 

 

Thanks!


Unbelievable comment. 

Valued Contributor
Posts: 2,708
Registered: ‎10-16-2008
0

Re: looking for a low-interest card


ace9848 wrote:   ...I am writing because I want a credit card with less than 10% interest. I see a Simmons option, are there others? (No interest in rewards, I have good cards for that)- and am I better off applying for a low-interest card now, or waiting...

I think you'll be lucky to find a card under 10% anywhere after February.  I think you'd want to find a card offering the lowest, longest promo rate, and take advantage of that during your sabbatical.

 

Hopefully, by the time it starts, things will have settled a bit in the cc industry, and they'll be courting good risks with outstanding promo rates.  Check your score here so you know what it is, and go bargain-hunting for cards a month or so before your sabbatical starts.

 

My two cents, and hope it helps! 

Regular Contributor
Posts: 246
Registered: ‎11-05-2008
0

Re: looking for a low-interest card

[ Edited ]

Hi Ace,

 

I did the same thing you are doing for exactly the same reason, so don't feel bad.  I too am worried about which of my cards will be worth keeping after the new legislation fully takes affect (no matter who's you want to call it.).

 

As far as cards and interest rates go, check out Ameriprise.  They have a World Mastercard that has a 7% interest rate and although it normally carries a $75 annual fee you can get one until the end of December and never have an AF on it.  The Ameriprise World Elite Mastercard has a 4.5% APR and you can get one with no annual fee (at least for now) and maybe forever but I'm not positive of that.  The Elite card states that the no annual fee version is an exclusive invitation for Achiever Circle Elite clients but people have been getting them issued with no annual fee.  It wouldn't surprise me if in a year or two, those who don't belong to their club start to acquire an annual fee on the card.  However, the regular World Mastercard states no annual fee ever with no mention of it being an exclusive offer.  The criteria for the Achiever Circle Elite clients is that they have $500,000 invested with Ameriprise and that they also spend at least $15,000 per year on the card.  

Message Edited by hemi961 on 11-30-2009 04:13 PM
Super Contributor
Posts: 5,703
Registered: ‎10-06-2007
0

Re: looking for a low-interest card

2 Years ago when I got my national City card, they offred me a 0% BT for 15 months no fee.  They would just send you a check.  You might call some different CCCs and ask them about 0% transfers or 0% interest for 6 - 12 months.  It wont cost you any FICO points and you dont even have to give your name.

 

LOl I guess we are free to speculate on the recent change in bank behaviour as long as we dont give credit where credit is due so to speak.  Pun is intended.

11/28/2014 FICO: EQ: 796 EX:788 TU:803
Moderator Emerita
Posts: 28,098
Registered: ‎04-01-2007
0

Re: looking for a low-interest card

[ Edited ]
ace9848, do you currently have any balances on your cards?

Another option is to look for signature loans from credit unions. They have the additional advantage of keeping the debt over on the installment side, so that it doesn't affect your revolving util.

general note:

As for the Credit Card Act, technically known as the "Credit Card Accountability Responsibility and Disclosure Act", or Credit CARD Act, it began during the last administration and has trudged its way through this one. How 'bout we all refrain from childish and inaccurate labeling of legislative acts?



edited to add missing close quotation marks
Message Edited by haulingthescoreup on 11-30-2009 05:24 PM
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