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25.49% APR on my credit card!!!

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25.49% APR on my credit card!!!

Taking charge of my finances is new to me so please be kind as you read on.  I just looked at my APR on one of my credit cards for the first time today.  I've had it for years and have never given it much thought but when I saw it I freaked.  I have a 714 score so I'm not sure why.  I asked the cc company to change it but they said no so I am thinking of opening another card and transferring the balance and closing the 25.49% one.  Is this crazy?  If transferring the balance isn't a good idea then I could probably payhalf of it off right away and the other half over the next year.  I'm not sure which way to tackle this.  Any help would be appreciated.
 
Thanks,
Carol
Message 1 of 4
3 REPLIES
Regular Contributor

Re: 25.49% APR on my credit card!!!

I'd definitely transfer the balance, but I wouldn't necessarily close the older card (unless it had an annual fee). I'd just use it for a small purchase each month, pay it in full, and see if the bank came to their senses. Smiley Happy
Message 2 of 4
Contributor

Re: 25.49% APR on my credit card!!!

I agree..with that fico score you should be able to easily get a better rate.  I wouldn't close that account since it's obvious you have a longer credit history with t hat credit company.  But find out which CB (Experian, Equifax, or Transunion) is reporting that score, then apply for a card that will run your credit report from that one bureau. I have a Wells Fargo Platinum Master card with a $7500 credit limit, they have me at a 24% interest rate.  I stopped charging anything on it over 100 dollars just to keep it active since it's one of my oldest cards.  After about 6 months of having a very low balance, they offered me one of those teaser introductory rates with (I think) a flat fee charge to transfer the balance at a 2.99% interest rate.  
Message 3 of 4
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Moderator Emeritus

Re: 25.49% APR on my credit card!!!

You should be able to get a better rate but why did they ratejack you and who are they?  Chase? HHB?  If your utilization remained at over fifty percent of thel imit for some time, cards are known to ratejack.  If you've opened a lot of new credit lately, they may ratejack you just on the assumption that if you max it all out you won't be able to repay.  Have you called them to ask them to lower it?
 
By all means when a card ratejacks you like that they are telling you in credit-ese that they do not want your business especially if they refuse to lower it..  Don't close the card just get a new one, keep utili low and keep that card in your sockdrawer breaking it out every 4 mos or so for a pack of gum.  Eventually they will ask nicely that you begin using the card again by lowering your interest rate but hold out for a better deal than you initially had
Message 4 of 4