Established Contributor
laboi_22
Posts: 634
Registered: ‎07-07-2011
What's the Big Deal with APRs?
[ Edited ]

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...

Current Scores: EX - 728 FICO (5/11/13) TU - 771 FICO (7/02/13) EQ ??

Current Cards: Chase Freedom $5,000, CSP $5,700, BofA Visa Signature $15,000, AMEX BCE $6,000, Walmart $4,150, Gap Visa $10,000, JC Penny $5,800, Lowes $8,500, Dillard's AMEX $8,000, AMEX Hilton HHonors - $2,000, Chase United $12,000, Citi AAdvantage & Simplicity $6,000/$6,000, SPG AMEX $1,000