Rebuilding, starting with high APR, how they work to lower it later?

[Anonymous]

For people who are rebuilding their credit including those who file for Bankruptcy...

Oftentimes, we apply for credit cards, we end up with 20+% APR rates. Who decides to lower APR after how many months/years of rebuilding? Do we ask for it? or is it automatic via such as credit reviews?

Thanks

[gizmotchy]

If you're using your card properly, the APR means nothing.  As long as you pay in full by the due date, you'll never have interest fees.  What you do is pay the card down to around 10% of your total limit before the statement cuts, then pay the final amount before the due date.  Lowering APR is up to them, and it's completely their call whether they do it or not, and each card issuer is going to be different.  Keep in mind that asking for an APR reduction can be an indicator that you're having trouble paying (especially if you're carrying a balance regularly) and can result in AA.  Doesn't happen all that often, but it's definately within the realm of possibilities.

[Anonymous]

If you're really worried about APR --

It really depends on the CCC you're dealing with.  Chase, for example, doesn't do APR reductions (or if they do, it's ridiculously rare).  Cap One can and will depending on the product you have.  Discover will (and it seems like they do somewhat regularly).  Hm... store cards won't, but it's possible that a cobranded store card with a major card logo on it could depending on who issued the card to begin with.

So far as I know, they have to be requested, and sometimes if you request one you may get a counter for 0% APR for a promotional period of time (looking at you, Discover - they like to hand out promotions with all sorts of things: BT APR, purchase APR, additional cash back, etc etc etc).  So it's worth asking once your profile is starting to look good and you've had your cards for a while.