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lowest vs. highest regular purchase APR

Senior Contributor

Re: lowest vs. highest regular purchase APR


score_building wrote:

sometimes there seem to be 2 major pif camps- some, suffice it to say that they pif and don't follow the details of APR fluctuations on accts. very closely.  others, like you it seems would prefer to have the lowest rates available even though you PIF (i do too.) 

 

i'd imagine you'd have at least some success (if you decide to be vocal with lenders about your concerns) having your rates restored or lowered either now or in the future.  since there are no financial consequences stemming from rate changes on PIF customers the largely wasted effort by the lenders who raise your APR can be somewhat confounding. 

 

maybe they are just hoping against hope things will head south, and some pif will revolve instead.  it has become a bit clearer to us over time that no one is necessarily safe from increases (as you, psychic, fused, etc. being uber prime-generally eligible for the v. best rates and terms by lenders) exemplify.


To get better APR's you have to open your mouth. Passivity won't do it. It doesn't take much time and can yield rewards. That's why, for instance, Direct Merchants Bank (HSBC) is on both my high and low list - I called, inquired about my high APR and was given a nice promo APR.

Message 41 of 51
Frequent Contributor

Re: lowest vs. highest regular purchase APR

Lowest: USAA MC/AMEX 7.75%

 

Highest: Chase(Former Providian) 31.99%


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Message 42 of 51
Regular Contributor

Re: lowest vs. highest regular purchase APR


score_building wrote:

sometimes there seem to be 2 major pif camps- some, suffice it to say that they pif and don't follow the details of APR fluctuations on accts. very closely.  others, like you it seems would prefer to have the lowest rates available even though you PIF (i do too.)  

 


Well, I don't pay any attention to CC rates. All I care about is the grace period. It's been over 28 years since I last carried a balance on any CC, & even then I did it infrequently. The only rates that concern me are the rates that I'm earning on my savings & investment accounts.
I know that some here say that you should care about CC rates so that you don't lose the option of carrying a balance. My reply to that is that there is always a better option than carrying CC balances. Always.

 

Message 43 of 51
Frequent Contributor

Re: lowest vs. highest regular purchase APR

My highest and lowest APR are with the same issuer Smiley Tongue, Amex. 

 

Amex Clear  7.24%

Amex Blue 15.99%

 

My other cards range from the 7.24% on the Amex Clear to 11.24% on my Discover.  The Amex Blue stands out like a sore thumb.  They are NOT willing to lower it.  The APR on this cards keeps changing.  It went up last fall, then back down, now back up.  Thank goodness that I don't revolve a balance.

 

 

FICOs as of 09/2009 - TU 813, EQ 811, last known EX 797
FICOs as of 08/2009 - TU 791, EQ 809, last known EX 797
FICOs as of 07/2009 - TU 806, EQ 809, last known EX 797
Message 44 of 51
Senior Contributor

Re: lowest vs. highest regular purchase APR


JimB wrote:

score_building wrote:

sometimes there seem to be 2 major pif camps- some, suffice it to say that they pif and don't follow the details of APR fluctuations on accts. very closely.  others, like you it seems would prefer to have the lowest rates available even though you PIF (i do too.)  

 


Well, I don't pay any attention to CC rates. All I care about is the grace period. It's been over 28 years since I last carried a balance on any CC, & even then I did it infrequently. The only rates that concern me are the rates that I'm earning on my savings & investment accounts.

I know that some here say that you should care about CC rates so that you don't lose the option of carrying a balance. My reply to that is that there is always a better option than carrying CC balances. Always.


Let's see, Jim... I have two balances that I carry on CC's. One is at 0% for nine months and the other is at 2.99% forever (and that is with a CU, so they won't be screwing with me like Chase might). Is there really a better option? I think not.

Message 45 of 51
Regular Contributor

Re: lowest vs. highest regular purchase APR


creditwherecreditisdue wrote:

Let's see, Jim... I have two balances that I carry on CC's. One is at 0% for nine months and the other is at 2.99% forever (and that is with a CU, so they won't be screwing with me like Chase might). Is there really a better option? I think not.


You've obviously doing a great job of managing your credit, & you make a strong case for carrying balances under certain conditions. Still, if I'm paying 2.99% on my cards while only earning 2% on my savings, I'm still losing money - just not as quickly as I would be if I were paying 23.99%.
When I last carried a balance, I was paying 12% on a Citibank card while Citibank was paying me 16.5% on a 6-month CD. But that was in the spring of 1981, when the Fed was using high interest rates as a weapon to fight inflation, & you could make some money by arbitraging rates. That obviously couldn't last forever. (It also helped that CC interest was tax deductible in those days.)
 IMO, holding down the cost of credit is an important part of personal finance, but it's only part of the story. The other, more important (again, IMO) part has to do with savings & investing, & that's where I prefer to focus. An hour spent looking for a great BT rate is an hour that I could spend more profitably on my investments. That's just my POV.
Still, congrats on a job well done. 
 

 

 

Message 46 of 51
Senior Contributor

Re: lowest vs. highest regular purchase APR

I have tremendous utility for cold hard cash in my hand, too!
Message 47 of 51
Member

Re: lowest vs. highest regular purchase APR

cap 1 at 0 cl is $5000; balance is 4000

cap 1 at 0 cl is $3500; balance is 1500

cap 1 at 4.9 cl is $1700; balance is 1500

cap 1 at 0 cl is $1200, balance is 900

 

trying to pay them down after a huge salary cut Smiley Sad

Message 48 of 51
Valued Member

Re: lowest vs. highest regular purchase APR

Cap 1 - 5.9%

Chase - 9.24%

 

 


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Message 49 of 51
Moderator Emeritus

Re: lowest vs. highest regular purchase APR

Discover 15.24%

Citi        24.99%

Message 50 of 51